It's interesting to read everyone's comments. Candid Coyote preferred the first version as well. A part of me wonders if it's simply due to the warmer color temperature. Totally reflects the emotion of the pic.
I do, however, prefer the second version. I got prints of both and it was illuminating. The color issues are somehow enhanced on paper. (For those interested, I used a downloaded ICC Color profile of the print lab I used, so it wasn't the cause of the issue. It was a fundamental pallet clash that Von Wong pointed to.) I currently have the revised version framed and I'm thrilled with it.
That being said, it was honestly a toss up between the two for me. I DO like how the reduced/eliminated shadows/highlights look on the second version better. Makes me wonder how the first would look if I used the same process without touching the tones or the dog. And I love both versions of the dog. Two completely different feelings about each. Both are true to the situation because both were captured within a few frames of each other. Personally, I'm in the "prefer them interacting with each other" camp.
I'm keeping a copy of both saved.
Thanks for the comments guys! It's fun to really dive into a photo like that.
-Rocco