Rich: No, I don't think guarding dogs are the whole answer. But at least according to the USDA, they have only begun to be employed in the US since the 1970s, about the time when the Feds dropped the bounties on predators. They are specific breeds that will actually do the job of guarding livestock, not just any old hound dog or family Lab.
According to the USDA at least, who I think have farmers and rancher's interests first and foremost in mind, livestock guarding dogs:
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Effectiveness Against Various Predators
Most of the research and practical experience with guarding dogs has focused on the dogs’ ability to reduce predation by coyotes and domestic dogs, the two principal predators of sheep in the United States. Coyotes, about one-third the size of an adult guarding dog, usually avoid a direct encounter with a guarding dog; and as our survey revealed, 95 percent of the guarding dogs were aggressive to predators, primarily coyotes. Fewer of the guarding dogs were aggressive to domestic dogs (74 perce nt), but encounters between guarding dogs and intruding dogs usually differ from those between guarding dogs and coyotes. Whereas most coyotes avoid a confrontation, intruding dogs may spend time smelling and posturing around the guarding dog. Fights may occur, but more likely the intruding dog will leave after a brief period of investigation. The end result is usually the same as with coyotes, no predation. However, some guarding dogs, particularly immatures, may stand by while intruding dogs harass the sheep. Occasionally, guarding dogs have joined intruding dogs and injured or killed sheep.
Foxes probably respond to guarding dogs as do most coyotes, by avoiding a confrontation and thus staying a reasonable distance from the flock. Several encounters between wolves and guarding dogs have been documented, but the results are not very predicta ble at this point. Some wolves avoid or bypass the area occupied by a guarding dog, others investigate and posture as described previously for domestic dogs, and others fight with the guarding dog. Wolves are likely more frustrated by the presence of a gu arding dog than intimidated by it.
We gathered information about guarding dog–bear encounters. In a typical encounter with a black bear, the dog would bark repeatedly and approach to confront the bear. The bear would usually respond by retreating from the dog. There was usually no physical contact between the dog and the bear, and the dog would continue pursuit for several hundred meters or until the bear was headed away from the sheep. The dog typically returned to the sheep soon after the encounter. Although our sample of guarding dog– grizzly bear encounters is small, it suggests that grizzly bears are less readily deterred by guarding dogs than are black bears.
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They summarize by writing:
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Dogs may be viewed as a first line of defense against predators in many operations. Their effectiveness can be enhanced by good livestock management and by eliminating persistent depredating predators with suitable removal techniques.
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Now, that sounds reasonable to me. They keep things on a factual basis. It is quite different from some (not you) who have described wolves as evil, and said that only whackos would allow them to live.