If the woman had used her hands and did a shoo, shoo type motion (cant come up with a better description) would people feel she was in the wrong?
As a dog owner I'd be annoyed if someone did that to my dog when we were that far out. It would be like they are assuming that I'm not in control of the dog. I'd not say anything, as it isn't a threatening motion, but the person would probably get some sort of look ranging between "what are you doing" and an offended "excuse me?"
If the dog actually went up to the stranger, I wouldn't be annoyed at all. I'd actually be apologetic for allowing the dog to get that close without an invitation. I can imagine understanding that the person might be scared, but if I had the dog under control they'd definitely get a look.
As far as the OP's situation, I think the immediate admonishment wasn't the best way to go about it. But I don't blame her for it. If someone looked like they were preparing to attack my pet I'd not really think through every scenario before saying something. Being ready to kick is one thing, practicing is another. One is defensive, the other is aggressive.
That would be hard to see, so using a more visual example. If the lady had an umbrella/cane/stick and she tensed up and held it in front of her defensively, looking prepared to strike and attempted to keep distance between them I'd not be too upset. I'd be more inclined to protect her from the dog. Taking practice swings in the direction of the animal would be upsetting. I'd be more inclined to to act like the OP.
But I'd say a better scenario in the OP's case would have been something like:
OP(in shocked & cold way): "Are you trying to kick my dog?"
Lady: "Keep that beast away from me!" or "Sorry, I'm terrified of all dogs."
OP: "Do NOT kick my dog" or "don't worry, I have her under control"
I think I'll take the advice and have Daisy on my other side when/if I see the woman, and try to stay away from her.
That's a good call. It will hopefully give the lady some reassurance and it will protect your dog at the same time.