Also, and I'm not saying that this is the case here, but people should watch that the children are not tormenting the dog.
So many times I've seen parents not bat an eyelash while a child is treating a dog or cat as though it were a stuffed animal. Climbing on it, pulling it, just being generally inconsiderate and causing the animal discomfort and/or pain. But when the animal defends itself in the only way it knows how then it's the animals fault. Unfair.
If someone tried to hang from my ears, for instance, I can't guarantee that I wouldn't bite.