If it’s wrong to own a dog then why are there all these halachos about feeding your animals first… and not petting them on Shabbos (muktzah)…. etc. etc.? I don’t think it’s assur. It’s just not the norm.
My kids went to visit at the home of a very frum Teimani this past Shabbos and were shocked to see that he owned a HUGE German Shepard. They were even more shocked to see that the dog understood everything he was told to do… sit…beg… etc. I thought it was quite amusing.