Go back and read the majority opinion again. We need not assume that dogs will never make mistakes or will never react to something other than an illegal drug. We need only assume that the dog sniff in and of itself won't reveal any legitimately private information. Nobody even suggested that it did.
The decision intrinsically addresses [the question of whether a positive from a drug dog sniff gives police officers probable cause to search a vehicle].
No. No it doesn't. The SCOTUS didn't meet to decide whether or not Caballes belonged in jail. If they did, then they would have intrinisically addressed the issue. From the opinion: "The question on which we granted certiorari... is narrow: 'Whether the Fourth Amendment requires reasonable, articulable suspicion to justify using a drug-detection dog to sniff a vehicle during a legitimate traffic stop'". If Caballes wants to argue that a positive from a drug dog sniff isn't enough for probable cause, he still has that option.
I would disagree because, once again, 'plain view' is being extended beyond the range of what a human being can sense during the normal course of events.
This isn't an extension to plain view. It's an entirely separate exception to the fourth amendment.
This ranks right up there with the usual 'fishing expeditions' normally shot down by judges.
Why do you think judges normally shoot down fishing expeditions? Because those fishing expeditions might let the state know whether or not someone is committing a crime? Or because those fishing expeditions could reveal private information about legal activities in addition to the knowledge that a person did or didn't commit a crime?