My kids are bad about going up to dogs and petting them. I have to remind them that their owner may not want them to do that and they need to ask permission first. Sometimes I don't think people actually think before they do things.
How rude of that woman to make that comment about your dog! Even if your yorkie wasn't up to her "standards" doesn't make it alright to comment about someone else's dog. If you weren't questioning, "is my dog a purebred?" then she should have never made the comment, IMO. I have to agree with you, she either was having a bad day, or she has no filter.