Yes, she truly believes that this is good for the dog. While we were texting a few days ago she sent this:
I disagree that he has an amazing quality of life, he is constantly on high alert and does not relax at all. Sure, on the surface he has absolutely no worries and he gets to do whatever he wants, but in reality he's extremely anxious and he does not know how to just 'let go' and relax. In the same conversation she said "I want him to alert me when people are outside in the dark". I brought up the fact that he is always going to be anxious then, and it's unfair for every single person who walks past her house and her neighbours to have Georgie barking at midnight or even 5pm during the Winter (which happened a lot this past Christmas).
She knows I disagree with her ownership methods, but I think we need to have a serious talk if she wishes this relationship to continue.