the impossible decision - can we live with Teal?

I finished reading Ruff Love by Susan Garrett and am following the recommendations.
Teals Rules:
1. No off leash time
2. No toys unless she is playing with me
3. Only food is given out of my hand
4. Nothing is free
5. Wait to go in and outside
6. Wait to get out of the crate
7. No opportunity for self rewarding behaviors

She is doing well with these rules in the house. Life is a lot less stressful when we both know exactly what she should be doing at all times. She still has no self control with distractions. Obedience class was going well for awhile. We practiced sit, lie down, touch and look at me when I say her name. She did well with everything and seemed to enjoy herself. It was all over when a dog ran past us. Her prey/herding drive kicked in and she started barking her head off and lunging at every dog we in the building. We left the building, not very gracefully.