Um, I live in South OC Ca. I can absofuckinglutely guarantee you that this is a real thing. We have a “high-end” mall near me (read “has an armani shop, etc…”) that allows dogs, and the sheer number of accessory purse dogs is ridiculous (GirlChild and I go there because it has a merry go round).
Fyi: These things also come in delightful designer versions (gucci etc…) if conspicuous consumption is your sort of thing.