I find your comments about the 'ladies' very patronising Chris, and your theory sounds like something out of a pitbull dog fighting training manual
True dog fights are relatively rare, but a spat/handbags is always over very quickly - unfortunately this can often be misconstrued as a fight but I strongly believe, where possible, in letting my dog speak dog.
My dog is an intact male so theoretically should be a higher risk to walk (in the insurance company eyes anyway), and I have spent the last 6 years reading every situation and trying to ensure that he is as confident in his interactions as possible because he is incredibly sensitive and if I am scared he will definitely pick that up. I have never picked him up - I have blocked other dogs if they seem to be approaching 'rudely', I have thrown treats down in front of me to distract a dog and I have had my heart in my mouth when he's had a disagreement (only ever handbags and no bites involved). I always drop his lead if I think the other dog is confrontational.
I have witnessed one true dog fight (but hundreds of disagreements with no injury) and one owner threw his coat over his dog and this distracted the dogs enough to be able to be separated without owner injury.