I have seen and heard of a similar tactic being used when judging Bichons - referred to as "facing up".
The judge will bring the exhibits into the centre to watch their reaction. A typical Bichon will be up on it's toes, neck arched with tail quivering and dying to be let of the lead to play.
It is done not to determine/view aggression but alertness and social traits.
As I understand it - not a common practice whilst judging today but if you come accross a "true breed specialist" - there is a good chance it will be done.
But I do agree that using another person's dog to bait yours - is just down right dirty tactics.