I'm not sure I follow the point of this whole argument. The tigers are actually dragons who look like canines because the Chinese had lions that vaguely looked like dragons but weren't. There's a whole heap of glaring logical leaps in there that I'm not going to bother pointing out. And besides, the khajiit did it simply enough with "[Alkosh] is depicted as a fearsome dragon, a creature the Khajiit say 'is just a real big cat'." without fart-arsing about with absurd meta-logic.
If you disregard the argument based on Fu Lions, There is still a Lore precedent for the Khajiit to be canine: http://www.gamesas.com/bgsforums/index.php?act=post&do=reply_post&f=16&t=883432 (Vulpines are not canines, but share the http://en.wikipedia.org/wiki/Canidae with them).
Since there are dogmer in Akavir, it's possible that they are (related to) Kahjiit too.
Still, I find it too much of a stretch to consider the possibilty that the Dragon is doglike, especially since Mysterious Akavir doesn't mention anything about them looking like dogs.