It didn’t upset me that I had revised my dreams for Coco—I just wanted her to be happy. I had finally come to see that Coco was an animal, with intrinsically far less potential than Sophia and Lulu. Although it is true that some dogs are on bomb squads or drug-sniffing teams, it is perfectly fine for most dogs not to have a profession or even any special skills.
Yes, she is talking about whether the family dog should serve a productive purpose in the household (after a lengthy period during which she tried to train the dog)