Around here there seem to be two types of festivals - those where dogs are welcomed and made part of the festival and those where they are banned. At the 'dog' festivals people pay admission for the dogs and it goes to a local charity. They have to be on a lead, and must show current rabies certificate in order to be admitted. Part of the fun of going to the festival is seeing the various dogs strutting around with their owners, most of them obviously enjoying themselves. There's even a "blessing of the animals" at the end of the festival. The venues are all outdoors (in open tents) and I've never heard of any problems. Of course, everybody who goes knows there will be dogs, and lots of them. I can see the point about potential problems - but mostly I think it boils down to owners taking responsibility, NOT bringing an animal whose temperment is unsuited to a public event, and keeping control of the dog at all times. Also cleaning up messes of course.