I've followed this in the news and have read through this thread. Everyone has brought up a lot of good points and good stories of personal experiences. I too have rescues, but cats not dogs.
I can see both points of view in this situation. I think it's a good policy that a dog is to be returned to the rescue if it doesn't work out. But, every situation is different and sometimes the rules need to be bent a little. In this particular situation, a good second home was found.
Just from a logical point of view, the rescue group should have seriously considered the hairdresser and her daughters first before demanding the dog back. Had they done an evaluation of the family and found that it was a good home for the dog, what would have been the harm of giving the dog to this family? They could have had the hairdresser fill out the paperwork, sign a contract, and periodically checked with the family to make sure all was okay. The dog would have had a good home, all the adverse publicity would have been avoided, and there would have been no need for all this media attention which will probably destroy the rescue group's business.
Last night on Greta Van Susteran, the attorney for the rescue group was briefly interviewed by Greta. When Greta asked him "why not check out the hairdresser and her daughters and if all is okay, let them adopt the dog?" The attorney responded with, "It isn't going to happen, the dog has already been given to another home." That sort of killed the interview. You could tell from the questions Greta asked that she wasn't happy with the rescue group.