Dogs were domesticated in the first place, I believe for things such as hunting farming, and the like. Or maybe it was just that human drive to control ****. Who knows. It was presumably the former, though, since domestication is a hell of an investment to indulge for mere curiosity, whereas the former would accomplish a tangible task.
As such, the fact that dogs will love an owner that treats them well probably speaks more to the nature of dogs than their domestication. Dogs don't need much to be happy, and like many more docile mammals, they are familial creatures. As such they attach to their owners.
Because of these things, unless you have a moral objection to the idea of a pet, I'm not seeing your point. The domestication of dogs, which served practical ends, would inevitably lead to a surplus of dogs that don't need to perform tasks. And even a pet dog will end up serving a function as surely as a police dog or a greyhound track racer. Some perform minor oddjobs like retrieving newspapers or other such things. Dogs tend to be territorial and protect their property. Owning the dog will force the owner to walk them, which will cause them to exercise -- never a bad thing.
Although dogs are exchanged in transactions, and generally end up loving their owner, I fail to see how this is any worse than a dog that is kept on to perform tasks. The relationship is pragmatic; dogs with good owners have a warm place to sleep, food and water whenever they need it, treats, exercise, you name it. They are getting plenty out of the arrangement, and I would assume that has plenty to do with their demeanor with a master. Dogs have a low threshold because they don't need or desire much to be happy.
In fact, dogs that are kept as pets have a rather luxurious life, if you think about it. They have no pressure to do anything. Their arrangement with their master is not unlike being a roommate that does not need to pay rent or buy food. Dogs that are used for occupational tasks, on the other hand, are basically indentured servants. And quite often they are put in hazardous situations that they, being dogs, cannot even consent to. Such as bomb sniffer dogs, or firehouse dalmatians. Or track dogs that get run to exhaustion.
So, yeah. Issues with the domestication in the first place, that I could see. Dogs were more or less snatched from the wild -- and their place in nature -- and indoctrinated to serve man. But to accept that and yet find fault with the common house dog is pretty silly.