You've certainly captured the allure of the basset hound: not very bright but sweet, shambling, and trusting. I'd not have associated it with Spike, but I can see how it might fit his own image of William. Billy-dog has won my heart. Good job.
One more typo: Spike paused in the alley where the dog lived
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One more typo: Spike paused in the alley where the dog lived