I actually have this IKEA catalogue and after closer inspection of the family "member" in question, it is in my opinion that the dog may not be a greyhound after all, but instead could very well be the elusive "Israeli Wiener Dog". Which begs the question, how much extra do you tip a rabbi for circumcising your dog? :)
All kidding aside, what I find even more ridiculous than the fact that this story was actually featured on the national news here in Canada, was the fact that they wouldn't even show the image on TV. Instead, they kept the disputed portion of the IKEA dog (most likely its leg) "censored" underneath somebody's thumb while they tried to explain to the viewer what it was that we were not supposed to be looking at. It was like they were saying "Here is something SO crazy that we're not even going to show you, but take our word for it... it's NUTS!"
I mean, if they were going to waste national news time to cover a silly story like this anyway then they might as well go all the way and show us the image and save themselves the time describing a dog's penis to describe something a little more important.