Sad to say but this had been happening like mad to horses for the past few years. Mind you horses are more expensive and hay skyrocketed in recent years. As in I went from $100-125 a ton of hay to $185-250. So naturally horses got cut quick for a lot of people even before the economy tanked. There was an article about it in the Boulder Daily Camera recently.
So I can see it for dogs. Dogs are a lot cheaper to keep, and people who perhaps don't have horse as hobby budgets could certainly have dogs. Naturally tightening belts means cutting the fluff and for some that means dogs. I just keep feeding my dogs fancy food and drinking less beer.