I think there are 2 different issues here. One is whether one brings one's dog to the bus stop, and the other is whether one controls one's dog in public.
I bring my dog when I walk my son to the bus in the morning. I don't do this everyday because my son's old enough to walk by himself, but about 80% of the time we head out at the same time and it's nice to walk together and talk a little, and then I go back, put the dog away and head out to work. Why do I do this? Well, because my mornings are already tight, and the idea of walking out with my son, going back the 4 flights of stairs to my apartment, getting the dog, and going out AGAIN so the dog can pee (having already been out with him once, because he seems to need to go to the bathroom before and after breakfast) would be the straw the broke the schedule's back. I'm already functioning on about 6 hours of sleep, so the idea of adding 20 minutes to the schedule does not appeal.
However, my dog is not allowed to jump on strangers, or to crowd up to a bus door, or to be near people who are clearly afraid. Since DS is in middle school, I usually don't even cross the last street to the stop, but if he were in say Kindergarten, and I needed to be on the same side of the street, we'd hold back so the dog wasn't in the group of children, and let my child come to me. Undoubtedly many children would come over and say hi to my cute dog (who would be sitting if they pet him, no jumping on children!) but any who were afraid would have plenty of opportunity to stay away.
I agree with you that this person is not doing the right thing, but the bigger issues seems to me to be that they aren't controlling their dog in public. I'm betting that there are issues with this dog in lots of settings, not just the bus stop.