I'v just found some article about dogs in islam! According to these articles, muslim can actually breed dogs! may be we can let our muslim friends to read this!!
(Another exception appears to be made by the Bedouin in the case of the Saluki. Salukis are considered the Gift of Allah to his children. They are allowed in the tents and considered special companions. It has been said that the Bedouin will never sell a Saluki, but will give one as a special and precious gift.[17]
Read your posting and yes it has been very evident that it is not a religious issue but more of a Malay issue. You must also have heard of Afgan Hounds, greyhounds and whippets. I suppose it is very like godess of mercy devotees not eating beef.
In another hadith, the Prophet, sallallahu 'alayhi wasallam, related this story: “While a man was traveling, he felt very thirsty. He found a well and went down to have a drink. When he came out he found a thirsty dog. He said to himself, "This dog is as thirsty as I was." He then went back inside the well and used his shoe to bring out some water for the dog. Allah was pleased with him and forgave his sins because of he had done." [Recorded by Al-Bukhari]