I didn't intend to say anything more, but I think I missed something in my previous post.
I *don't* believe the OP can have been noticeably rude because of the way the other lady reacted. The OP said that she seemed 'mollified'. Her response ('Just keep that beast away') doesn't sound particularly friendly, but it also doesn't sound like the response of someone outraged.
I would also add that I think the OP was right to ask the other woman not to make kicking moves, and in fact that is quite valuable advice to give to someone who is afraid of dogs - i.e. don't make sudden and odd movements that might alarm the dog or attract its attention.
I'm not unsympathetic to the other woman - as I said, I'm wary around dogs myself and like to keep a good distance from them unless I know them well. But the way she reacted was both odd and counter-productive, and I think it's a good thing that the OP spoke to her about it.