I'm not sure I entirely agree with you about the avoidance in this case. It isn't like being scared of an immobile object, like a bridge, or something that's out of anyone's control, like a wasp. It's a human's pet, meaning it's fully mobile and under the ownership/control of a person.
When we walk our family dogs and someone approaches us, we call the dogs over, and either put them on a lead or just hold the collar until the people pass. I think in the instance of shared human space (because that's what we're talking about, we're not really talking real, off-road nature here, we're talking about paths and footways made by humans for other humans to use) then although both should ideally be accommodated, the onus should be on the people with the non-humans to give way.
Especially when the humans can't avoid using it - for example a bridle path parallel to a main road is sometimes used in place of a pavement, so there isn't one. It's unreasonable to tell a person to avoid it because a human's pet takes priority.
It's not that difficult if your dog is actually as well trained as everyone on this thread says theirs are. And I've never stood there hugging the dogs to me or restraining them, that's just ridiculous hyperbole - I just pause briefly to let people past. They understand the signal that I'm there and they don't need to be afraid to pass because I have hold of the dogs, both figuratively and literally. I'm out anyway, and I'm not in a rush, I'm basically there to wander aimlessly, it's not exactly a major hardship, is it?