It's not about "bad dog" or "good dog", it's "your dog doesn't belong in the grocery store sniffing the lettuce I'm trying to buy", or "your dog doesn't belong in the clothing store shedding hair all over the pants I'm trying to buy".
Neither are things that a "good dog" wouldn't do or a "bad dog" would, they're both natural things that the dog can't help... ie. it's not the dog's fault it's shedding.
The problem is the owner that invites the situation.
It's just plain rude for the owner to think everyone else has to put up with their animal. I love animals, always have (since I was a kid I've never not owned a cat or dog, or both, sometimes multiples of both), but I would never think it sane to force my animal upon others, especially at a store.