I started hunting out of a layout blind with Molly 2008, and have been using burlap from day 1. I like it better than those mutt huts, it pack/stores nicely in the layout blind, its more versatile, you have more control over your dog, and you can completely cover up your dog when need.
Here is how I set up. Say your feet is pointing 6:00, if you are right handed which I am, your optimal swing range is 2:00 to 6:00, I set my blind up where birds come in 3:00 to 4:00 (see pic below, gun pointing 3:00 to 4:00). And my dog I have on my right, she peaks over my legs in direction the birds come, and with this angel, you do not shoot over your dog and you have better control over dog breaking or creeping, like the pic below...
Pic below, with the logs laying around my blind, she comes in from the back and lays down right up next to me, and I just throw the burlap over her..
That mutt hut would just not work for me and the way I hunt layout blinds.