Another cheer for you! I think this is adorable and can't wait to see what you do.

If it does not work for clothing, what about a pillow?

I have usually not been a fan of reality photo-quality pics of animals and flowers and such on clothing--too much like those personalized screenprint T's.
I agree with the appeal of the small repeating check pattern and the idea of making it more subtle, and juxtaposed, as a shirred or gathered design rather than a straight-up linear thing like a rectangular T top. Something like the inside of a pleat or gore or even a lining. Unexpected. Dogs peeking out rather than in your face.

Aw, it has my American Eskimo furbaby--white doggie on the right of bottom row of the top pic (that's a lot of prepositions).

Interested to know what you do with the fabric.

I voted yay, it's a fun print. Another subtler option: one of those swingy tanks that has the side panel inset (like below), where the inset is could be doggies. Regardless I have full faith in whatever it is you decide to create