You see some crazy shit when you spend the weekend selling used videos at the local flea market.
You'd be amazed at how many different ways there are to tote a small dog. You can tuck your chihuahua into a leather man-bag. You can push it around in a pet stroller, or you can just go ahead and load three pugs into a regular baby stroller. You can stuff it in a canvas carrier made to look like a really ugly purse with vented sides. You can buy a sort of harness made to go around all the important bits and leave the pup's legs and tail dangling as you carry it by the special strap at the top, as if the whole animal was a yapping diaper bag.
Or you can do as one family I saw did: carry the small dog lovingly in your arms and clip the animal's leash to your small son's britches, solving two problems in one go.