Most big dogs would love that kind of hug... Little dogs are the worst around kids, IMHO. They are too fragile. The most important thing to remember is know your dog, watch his body language, watch kids, and help them learn that dogs will react to pain.
My golden loves children. I can't even conceive of him ever doing anything to hurt a child, no matter how "provoked." I also know someone with a Carin, and the thing snaps and growls a lot, and has a bad temper. I wouldn't want that dog's disposition in the body of a pit bull.