If you care to explain to the rude people, simply tell them that Yorkies are like people: you have your "average" sized ones, but you also have folks who are smaller or bigger. They're still HUMAN - just a little different in size from "average".
Maddie is still a Yorkie, she's just a little larger than "average". Then finish off your lecture with, "I think she's just *perfect* for me! If she was smaller, she'd break easier!"