I agree with you. Dogs senses fear, right? They bark at people who are scared at them, chases running people and barks at strangers.
I'm living in a rented space right now and my landlord owns a dog. He's on leash and whenever he sees me, he barks loudly. My board mates always wonder why he does that. I love dogs but I think they don't always like me. But Buchog never bit me. Ever. I'd like to think that he's happy whenever he sees me and barks at me as a greeting.
So, no! Dogs shouldn't be corrected. They shouldn't be punished.