I truly believe some Yorkies (and probably other breeds) just do not like kids. Cali just turned 2, and she has been around my daughters since the day she (Cali) was born. She still doesn't like my girls very much. They pretty much exist in the same place but do not bother each other much. She will tolerate them picking her up, but she does growl and let it be known that she'd rather not. However, if they happen to be relaxing with a snuggly blanket then she will certainly lay with them.