@blmartinez No. The fact is that If small dogs are repeatedly taught that regular-sized, friendly dogs are to be scared of, they end up scared of them and will eventually go on to display violent defensive behaviours.
This isn't 'my theory'; it's dog training 101. Same deal when walking on a leash: if you tense up and pull the dog close when you walk past a stimuli, like another dog, your dog senses it and will become distressed. Do it enough times, and you will condition your dog to think that whatever the stimuli is, is something they need to defend against; violently if necessary. Picking your dog up is teaching them to feel unsafe in the long run.
How to make your dog feel safe and secure is with positive reinforcement. Use a soft, high pitched voice to comfort them, and reward with a treat when they walk past nicely. That way you're teaching your dog that other dogs are positive and not scary. If they see you interacting with the other dog positively, it's also good.
Just to clarify; I've never seen a larger dog attack a smaller one, but I have seen a lot of the small breeds be very aggressive. It actually drives me nuts and makes me not want to let my friendly guy play off lead because some horrible little snapper that's been trained to bite will approach him and then bite him. Even on leash, they'll lunge and snarl at him - presumably because they've been taught to be afraid by naive owners.