This is only my second post (I tend to lurk a lot

), and so I hate to be rude, but I fell horrible for that little guy. As others have said, dogs pick up on emotions
very easily. He knows you don't like him. It makes me very sad to think about him being moved from home to home. Then he comes to you, and you don't like him. Mostly because of the way he looks. You seem to be using your cats as a scapegoat for the real issue, i.e. your superficiality. I just hope for the dog's sake that the next home he finds is a forever home who will love him even if his hair never grows and he grows up to be a 20 pounder. Sorry to be a jerk, but my heart breaks for that little guy and all he's been put through.
Edit: I guess I should go sit by jp4m2. :P