I love floppy ears on yorkies.
I think Maddy is just darling. I love your avatar.
Unless people are asking rudely, I would let it go... they are not familiar with the yorkie breed. I find myself doing that sometimes, like I kept insisting this one mixed dog I saw must be part Westie because of the tail, I'm sure the owner was kind of annoyed that I was telling her what her dog was, ha ha. I don't know what got into me. Sometimes when you see a dog, it's like a puzzle to guess the breed(s) right.
I was talking with one woman who was actually very nice, but kept referring to Thor's coloring as "freaky".