The dogs..

[Thaliur]

I think it is easy to make those dog's to smell the player but then if they find you always when you are hiding behind a box then the game will lose all stealth factor and the player will be forced to fight with them always when they are near. I hope you understand my english

Perfectly, and I'm not even a native speaker

That's probably the actual reason for the dogs not having any sense of smell, but a "scientific" explanation would have been nice too.