I have a very good tolerance for insects, bugs and critters in and around my house, orchard, and garden and I often point out the predatory wasps flying around and appreciate their job eating whatever it is they eat. This is something different, and on the level of an Alfred Hitchcock movie. I thought a similar thing about cicadas, but I have not seen any evidence of those for years and have only had these wasps show up as recently as last year. If these things were eating Japanese Beetles that would be a different story, but I have yet to find a good natural solution to those either and they do great damage to my trees.
The ability to store the dog in an enclosed area is part of our agreement, and I completely understand the objection to the infestation as it stands. I absolutely hate considering more drastic solutions, but it may be what needs to be done.