Hmmm...That IS a much better situation, for sure. They'd have rights just like us and everything. Heck, given how they are, I wouldn't doubt them being superior to us in different ways, while we're superior to them in other ways. Kind of a balancing act; We help them with what they can't do (hands vs. hooves) and they do the same for us (magic vs. notmagic)
I disagree with the ponies to dogs comparison, since the ponies have much more human-like personalities than they do dogs, but it was cute to read. xD Have you read or listened to (there's a wonderful "dramatic reading" on youtube) "My Little Dashie"? This idea reminds me quite a bit of that story.
You were the one who wrote it and you were the one who came up with the original idea.
"I JUST wrote it." Pffft... please.. you MADE it. You know how I feel about these pieces and I am proud to have helped you out with it, I'm not sure the content is to my tastes. Sorry sweetie but it's just not my cup of tea, but you already know this.
Great job on it though, I hope to see you finish your main fic in the near future!