How to help a dog that is scared of other dogs

Hello everyone, I have a sheltie/miniature poodle cross called Bilbo. I'll attach a photo at the end, but he is 3 years old, medium sized, weighs 12kilos and is neutered. Despite all my best endeavours - puppy classes, 1-2-1 training classes, socialisation etc - he has grown up to be very timid. He is especially scared of other dogs. I have made progress in that he will now stand, looking pleased, as they approach and wag his tail instead of cowering behind me, but then it often all goes wrong because the approaching dog doesn't give him any space or time but is totally in his face.
So, this afternoon, we encountered two unneutered dalmations. He coped very well as they hurtled towards him, standing still and wagging his tail. Then, when they reached him they didn't stop hurtling if you see what I mean. They both tried to MOUNT him simultaneously (well, that's what it looked like) and he was terrified and I was too and he was trying to get away and they were pursing him so the three of them were spinning round my legs and unbalancing me. When they had almost pinned Bilbo and he was yelping I scooped him up and held him high away from them although they kept jumping and trying to grab him anyway, and nearly succeeding actually as they are big dogs and I am only 5ft, anyway finally the owner shimmied along and leaded them telling me they were only trying to play.
Were they? It didn't look like play to me, but my partner says I was wrong to pick Bilbo up and no wonder he is timid and this was not the right thing to do.
So what should I have done???

Poor guy. I'm not one for picking up a dog when it's scared as it could make the problem worse, but in that situation I would have done the same thing. It's one thing to not want to reinforce a behavior you don't like and it's another to protect your dog. If the two dalmatians were acting politely then I wouldn't have picked him up, but they were pursuing him with very rude behaviours which could potentially turn for the worse.

You didn't know the dogs so how were you supposed to know what their intentions were? Plus that is not a good way to play with a strange dog.

I hope it didn't set him back too much. Is there a way you could set up a play day with only one other dog that is very calm and courteous? Maybe having Bilbo around a dog that is calm and isn't so interested in playing at first glance might make him feel more comfortable, then in turn will boost his confidence with other dogs.

I really feel for you as I have 2 who are timid of other dogs when they bound up.
Mine are rescued greys and they are very placid laid back as all greys are but remember that they often haven't seen another breed of dog since they were born until they go to their forever home. My Rusty is 7 and we had him at 6yrs old and he had not seen another type of dog until he went from RGT kennels to a local dogs home. The other grey, lily, had not seen other dogs at all until she came to me. She was picked by the first trainer she had from a field containing 247 greyhounds and that is how they are raised in ireland
Not meaning to take over your thread, just explaining why I fully understand your problem and my main gripe is other dog owners who have off-lead dogs but do not spot the body language of other owners with on leash dogs. I will always stop and bring my 2 in to me so they feel secure, rather like holding a child's hand, but most owners still allow their dogs to race up and annoy often with that well worn phrase 'they only want to play'. grrr! That annoys me more than anything. They may be friendly and only want to play but their owner has no way of knowing if mine are frightened or downright aggressive.

I fully understand why you picked up your little dog (not something I could do with mine lol!) but it is the worse thing as it will encourage the other dogs to jump and try to get him.
Always put yourself between your dog & the offending dogs. Let your dog know you are protecting him and he needn't worry and by putting yourself between them you are re-inforcing this. I would always lean forward towards the incoming dogs to enforce my space and if they don't stop I shout 'No!' or Go Away' in a loud deep voice.
Is it possible to walk him somewhere quiet and get his confidence slowly. I always try to walk mine in a quiet estate where if we meet other dogs they will also be on leads. Interestingly, once a month we meet up with many other greyhound owners and walk in a very popular national trust park where we could meet up to a hundred other off lead dogs on the walk but because they are with around 14 or so other greyhounds they are confident and don't worry about them, unless they are particularly annoying them.
good luck

Maybe you could take some citronella spray or something that makes a loud noise to scare of any dogs invading Bilbo's space.

Hi I have a very timid puppy,she was bullied by a french mastiff when she was 12weeks,and she was returned to the breeder and I now have her I also have a 6yr old who is Auntie to her.You can tell if a dog wants to play,most of them go into a play bow,But if you pick your dog,up the dog reads this theres a problem OMG,they sense if you are stressed,because they detect this by how you are holding the lead,and I know its hard to act calm,if you see 2 bouncy dogs bearing down on you,I would walk away if possible,calmly and not dragging your dog, talking to it all the time,distraction works well treat or favourite toy,but you must get the dog to look at you and once you have got its attention,hopefully the dog will sit quietly,I havent got there,but gradually,mine sits,still worried,but she is reacting better its a lot of work and patience,but its worth it in the end crystalgirl

Thank you for all your so quick replies. I can easily get Bilbo to sit and look at me etc as he is very obedient but obviously he can't obey if he is being jumped on by x2 big dogs at the same time!! I think pretending Bilbo is a Mastiff or a greyhound or something (lol) is a good idea i.e. the option to pick him up simply isn't there. If he was a big dog, what would I do? Well, yell at the bullies I guess. I think the spray might be worth a shot too, I will check it out. Thanks everyone!