Yeah I know dogs tend to freak out on about anything that comes their way out of the routine. I've seen dogs that couldn't be around kids for that reason. It's "you're dark/light/tiny/huge/male/female and I think that's weird" lol.
As for our hill, we're the first gringos to come. Our neighbors if anything have the impression that we sleep all day and do nothing based off my skin color and eye color but I can't blame them LOL. So I just do by best to break the norm.
As for smokey, It makes a difference when the owner recognizes the issue and makes up for it lol. She had no clue she was being racist XD