LUvMyLab3 - Isolation is a big word. Depending on the severity of this situation - the dog being removed from any situation where there is potential danger every procaution should be taken. Isolation? Well if having children over and removing the dog is isolation then I guess this is the responsible thing to do. Some dogs (as mine) where highly unpredictable and I could never leave him alone with anyone other than my mother, sister or father. He never responded perfectly well with people as he had been shot and beaten with a shovel from his previous 'owner'. For this reason - he and I worked diligently together, everyday for 11 years until his passing. I worked with specialists initially, and then grew from there with the knowledge I had. He was never 'isolated' however he was removed from situations. I never ever wanted to be in a position where I had to make 'that' decision. And thankfully - I never had to.
Baily - you are correct. The key to this is knowing your dog well and reading all the signs and signals he presents. Indeed, someone with extensive knowledge should be consulted. Rotties (in general) are very difficult dogs to read. They are steady and reading Ben's (my rottie) body language was very different that reading the shep's. For this breed, I highly recommend a specialist.
At the same time Baily - I believe in desensitizing your dogs wherever there is problematic situations. As stated, a safe distance and with a muzzle. I truly believe in this as I have had my share of successes with this process with dogs and horses.