I don't see a problem with dying your dog as long as it is not a harsh chemical that burns and causes irritation liked some of them.
I do however think it is ridiculous to add things like peacock tails and cut their coat in a way that must feel weird to walk around in.
Of course, I don't feel bad for those dogs, you cannot force a dog to do something and make it look good, just like with agility and show dogs, they must enjoy what they're doing, it's their 'job' like a herding dog has a job. It's what they do.
Even though poodles were bred as hunting dogs and I have seen old pictures (drawn, of course) of old war times, and you can see poodles in several pictures running at the horse's feet, they were not always primped babies.