Aw, she's gorgeous. 
My dogs are always behind a dog gate when I open the front door and I tend not to let them into the living room when we have visitors unless the visitors seem keen to interact with them - but they are big dogs, so far more imposing to the uninitiated. They are however, just the other side of the gate to us and not locked-away.
The only person I lock them away for is my Step-Dad, as he is really phobic about dogs and has been since he was a child. I have no problem putting my dogs away if people are scared of them, but they are a part of our family and if you can't accept that, then don't visit.
Our house probably does smell a bit doggy, having two large dogs living in it (although frankly the emissions from ds1's rear end are probably far worse than the dog. ) but you don't have to come inside and smell it - it's entirely up to you. (It doesn't naturally follow that houses with dogs in smell either. When we sold our last house we had 3 dogs and the estate agent had several people ask why there was a dog run in the garden, as we obviously didn't have dogs. We just removed their beds and took the dogs out for a walk whenever we had a viewing. Wooden floors downstairs, dogs not allowed on furniture or upstairs, so nothing to hold the smell - other than the fur on their bodies and their beds.)
We have friends that have cats, I'm not really a cat person, find their fur more annoying than dogs in the way it tends to float and cling and dh is allergic to them. One friend in particular has several very friendly cats that tend to plant themselves on your lap as soon as you sit down, but we still choose to visit their houses (albeit without the dogs 
) and will fuss their cats if they approach us - our choice and we go (and dh takes antihistamines so he can go) because we are good friends and accept their right to choose their lifestyle and pets etc. They aren't really dog people either, but still visit us and fuss our dogs occasionally.