I saw a guy at the Antiques market last week with a bag like this for his dog. What a perfect bag, made with heavy duck cloth and a quilted lining. It is from Wagwear.
There are days when Abby wants to be held all the time and it is a little hard getting things done holding a dog all day. I have resorted to strapping her to me with a long scarf like a baby. Don't want to go out in public like that though. In winter, she gets cold easily and runs the other way when she sees me pull out one of her sweaters. I have been trying to think of a way to construct something like this for some time. This saves me all the trouble of trial and error bag designing. I love it, Abby does too.