So while it's setup like you say it is, in theory, what you think cannot happen is what happens in practice. Same with public drinking and other laws. The police usually look the other way unless you are abusing it somehow, being too drunk, loud or otherwise annoying. Sitting in the park with a bottle of wine is fine and won't end up with you getting a ticket, even though it's illegal. At worst they'll tell you to stop whatever you're doing, and if you follow their command, that's the end of the situation.
Maybe the big difference here between law officers in Spain (Barcelona at least) and wherever you're based, is how strict they actually enforce the laws. Here is maybe a bit laxer, which also fits in with the whole culture here, and it's represented in how law officers behave as well.
Your doing what you're doing stabilizes a culture where there can be no consequences for anyone in this domain, because there's no clear line of enforcement. What's a low-wage enforcement officer expected to do in this context you advocate, where people "mind their own dog's abilities" and only get fined when some clear violation occurs? Are they supposed to fine people only when they see dogs chasing birds, or scarring a fearful child, or jumping up on an elderly person, or any number of other things with unclear lines? No, you just outlaw dogs off-leash, and allow the $20/h enforcement officer to clearly execute their pro-social task. The anti-social behavior get fined.