Coby
loves going in his bag. If I put it on the floor, he is in it in a flash tapping his foot being impatient to GO SOMEWHERE!! (My only problem is that he's outgrown my first bag and isn't keen on any of the bigger ones I've tried. He just keeps squeezing into the little one.)
I find that people are a little less "handsy" if pups are in a bag. If you are carrying them, they are more likely to want to hold them. If they're in a bag, they are content with petting them.
Depends on the dog or the place of course, but I think they feel secure in their little protable kennel/den.