Yes, I loved the Dog too. I loved the Dog in Fallout 1, 2 and I love it in Arcanum.

Last time I played, I was a tech rogue and here's what happened:

I was master in both prowling and backstab.
I had twenty two molotovs in my inventory and fifty more in the Tarant warhouse (I use it as my homebase).
I had Dog as my only follower.
I ran arround Ashbury graveyard to gain seven levels.

It was a mistake. Not only I kill with one slash but after I got the dog, I barely have time to get to my enemies before my canine friend feeds on their kidneys.
Not only that but I discovered that by making two charged rings I don't even have to raise my dexterity to be able to train as a master in Backstab.

Needless to say, I stopped playing Arcanum for now. I find KotOR better for no less than 11 reasons. Of course I noticed that KotOR was influenced by Fallout, Arcanum, Wizardry 8, Omicron and Baldur's Gate.