i also read somewhere that some yorkie owners think of their puppies as little people. thats why they dress them up...
i do think of milu kind of like a little person...
but it's important that they know they are dogs, so i try to take her to puppy socials and classes for her to see other dogs...otherwise she starts acting strange sometimes, she hops around the house once in a while and she loves to eat grass (i have bunnies, so i think she is copying them...)