Depends on the budget, and time constraint.How hard and time consuming is it to render a basic dog for a 10 seconds appearance. This is the definition of ''word that causes people to be warned in this forum'' devs.
You talk about priorities and yet, why does the dog even exist? He serves no purpose there.
The jpeg dog does look way better than the Lightning Returns one at least, now that was purposely done as a troll move.
I'm actually pretty impressed by the decision. Rather than spending money and manpower to model and animate a dog, they just inserted a picture of it for a 10 second video.