You are obviously a poor judge both of others’ behavior, and of the term “baiting”. From Webster’s Revised Unabridged 1913+1828:
To provoke and harass; esp., to harass or torment for sport; as, to bait a bear with dogs; to bait a bull.
The dogs in the exhibit were provoked and harassed by the placement of a strange dog in a confrontational position (directly ahead), for the entertainment of museum visitors. The fact that the dogs were restrained means they were kept from fights they were provoked toward.