Big fan of this, though as others have said the weakest part really is the story, which isn't helped by the poorly written dialogue (Typos, awkward grammar, etc.) The option to disable the dog's inner dialogue recognizes these issues, but it feels like a somewhat lazy fix that doesn't really address the problem but rather creates a new one - the player missing out on plot info. Some people simply might not want the dog to speak and that's fine, but with thoughts disabled a lot of scenes just play out wordlessly and it's jarring.
A big restructuring/rewrite of the story and dialogue is badly needed at some point, and if the option to disable inner dialogue is to remain, perhaps have this option instead replace the inner, first person thoughts with third person dialogue, for example instead of "I saw her and got aroused" it would display "Rex became aroused at the sight of her", or writing along those lines. It would greatly add to the immersion/experience.