When I had my pack of 3 girls, they were not tiny, I had several encounters in campgrounds where dogs that were supposed to be leashed (campground rules) would come running at me and my girls, I would scoop all 3 up, a total weight of 36 pounds lol, I would always turn my back while SCREAMING someone get this dog. I would keep turning so this dog could not sniff my dogs, I had a fighter, the smallest one of my pack, my concern always was, even if this dashing dog was friendly, my fighter could incite a friendly dog. Cody is a aggressive boy, not that he has ever fought, and I don't know if he would actually "start" a fight, but in a situation as you had he would, with not a doubt in my mind would go after a dog if he was in my arms and some dog was able to sniff him.
Perhaps his dog was friendly and the man knowing this made no attempt to get his dog, but what that jerk doesn't realize is YOUR dog may not be dog friendly and things can turn ugly real fast. With a dog that muscular you nor Dutch's would not come out the winner. If that were ME, I would have blasted that man "after" he got his dog.
I'm just happy neither you or Dutches were harmed, but a horrible and scary experience for you. Thankfully you make yourself aware of everything around you, smart and wise lady
