I am a dog lover and we have 3. 2 Cockers and 1 toy poodle. I am FAR more worried about the toy poodle than the others as far as agressiveness.
I have gates in my house which limits the areas where the dogs have access. They are barkers. When we have company, they are friendly, they do bark and I am the one who blocks them from company whereas my hubby says, they'll be ok. This is 1 area where hubby and I disagree... As much as I love my dogs, I can appreciate that others may not love all the attention they get from my dogs so I try to look at it as a matter of respect for the other person.
When my housekeeper is here, there is 1 area of my house where my dogs stay. She does not come to this area at all, I maintain it myself.
We do not leave our dogs more than 5 hours alone. We have a house/pet sitter with access to our home and she comes in as planned when we know we'll be away. If it is overnight, she sleeps here. Our dogs are not crate trained but they have limited access to our entire home.
They are godsends to us when they alert us that the bobcats are outside, someone is on the property, etc and I love that about them.
I don't know why someone would be so sensitive as to not put the dogs away if they had a guest that preferred not to be around them, most especially a child. That sounds disrespectful to me.
Our dogs have all been around us and our daughter (now 18) since they were pups. They have never been around smaller children and I do not allow them around smaller children because my dogs are not accustomed to small children and I prefer not to take a chance.
I am with you one this one... your friend should respect your boundaries and put her dogs away when she has guests, especially dogs that some people truly fear.
Good luck with this conversation!