This is a problem we as humans have created. 10,000 years ago, dogs did "self-domesticate," but at some point we as humans created this dilemma that you outline

The Dogs that did self domesticate from wolves did so to rely on humans to survive.

http://en.wikipedia.org/wiki/Self-domestication

Originally, dogs would just kinda hang out around humans. When we started capturing them, breeding them, forcing them to work, abusing them, and eventually bringing them, in massive numbers, into urban areas, we made the choice to deal with this situation

Most of this is untrue as pointed out above. Also, when a dog works, it is done out of instinct. An Autralian Shepherd will herd naturally even though it's never been trained to do so or even seen a flock of sheep.

http://www.animalplanet.com/pets/do-dogs-automatically-know-how-to-herd/

we couldn't just kill or release all these animals (which oddly enough, you pet-owners will gladly do when an animal is inconvenient for you)

That's quite a large blanket you've brought to the conversation.

We would have to come up with a logical, moral, and efficient way of either re-integrating certain breeds back into the wild, or letting them die off naturally, if they can't survive the wild.

Soooo pretty much, you feel that it's wrong to own dogs despite the fact that most of the reasons why you feel this way are actually false. You're also unable to give a resolution but still have no issues airing out your feelings of superiority for not 'enslaving' a dog.