As a dog owner, I don’t have any problems putting the dog away when other people (even kids, OMFG!) come over. It’s just courteous, and all the whining about “my dogs, my house” is just foolish selfishness.
As long as you aren’t socially or in any other way obligated to deal with people with kids, that’s a workable solution, certainly.
While Lochdale’s attitude about “danger” is odd…like I said, my position as an animal owner is that when I must have untrained children in my house (hard to avoid, with one of my own who doesn’t ask me before she makes friends) I isolate my animals for the protection of the animals, not for the protection of the children. All it takes is one helicopter parent with the right kind of connections and suddenly your (adorable) pup is being looked at by animal control for (IMHO, but not in my town legally, justifed) nipping at a 4-yr-old who yanked their tail.