I've started this note 4 times now..lol Lets start again. This is a lengthy reply but I think you need it. First off, you have mulitple problems here. Most of which can be corrected.
Your Pyr is at her "worst" years. Just like human juveniles they are trying to establish their place in the world. Most of it they will outgrow, normally by two years of age. However, toward the day that they do outgrow it, they need the training it will take to make them a confident animal. I raise my Pyrs as guardians but I interact with them daily, train, and socialize.
That being said, I've raised Pyrs for 20 years. If there is one thing I have learned it is that every Pyr is different. Breed profiles can be helpful but they dont allow for the differences in dogs and they can be major.
Binky is trying to establish herself as an alpha, and by the way that's a good thing if she is going to be guarding goats. You can help her be a gentle alpha by correcting bad behavior strongly and consistantly. But you are not going to change her basic pyrsonality so you need to guide her with training. With new goats coming, your timing is not the best. So you need to prepare Binky for the new goats right away. You need a pen to put her in, get her out of the house and into the pasture where she belongs. Pen her next to where your goats are going to be so that they have a common fence line. That way they can interact without her hurting them and they will have a chance to get use to each other's smells etc. With McDougal being low man on the totem pole she is always going to dominate him. All you can do there is to monitor their interaction and isolate them from each other if it gets too bad. But you need to get Binky into that pen right now. Feed her there, interact with her there, give her treats there. When your goats arrive, only take her into the pen with the goats on leash. Get a leash, loop it through your belt loop or get a long one and loop it around your waist so your hands will be free. Let her get to know the goats under your supervision and correct "play behavior" like chasing or mouthing the goats with a very firm no and a short jerk on her lead. Give her treats when her behavior around the goats is what you want it to be, with a very inthusiastic "Good Girl!".
As to the torn pillows. Binky is a bored dog. She is a guardian at heart and she will most likely never be happy in the house all the time. You will see this more as she grows older most likely.
As far as being gentle with smaller animals, they usually are. But like I said, they are all different. Be very firm with her when she pulls this stunt with the little one, and immediatley isolate her from not only the little one, but from you (whom by the way she is trying to guard). Learn and understand your dogs basic instincts. Most of this behavior will change as she grows older, keep that in mind.
I can recommend several things that will help.
Learn basic instincts and character of your dog. Read this.
http://www.pyrenean-journal.com/patous.htm It's the story of a kennel dog that went to a guardian home at 6 years of age and it's a hoot.
Join us at Pyr Talk. It's a list for folks that use their Pyrs as guardians and they are very helpful with answering questions and givng guidance.
http://groups.yahoo.com/group/PyrTalk/You also need to read this. It's how to break up a dog fight safely. You need to know this in case it comes to that. Bear in mind that Pyrs are "anti-predator" dogs. They are dog aggressive by nature. Some much more than others. They are usually very gentle with the little ones but not always. And remember this. Pyrs have been known to fight to the death. Are your dogs spayed/neutered? I firmly believe that she will outgrow the aggression toward the little one. But dont expect it to happen between her and McDougal unless he fully submits to her as she ages and perhaps not then.
http://sonic.net/~cdlcruz/GPCC/library/dogfight.htmAlso here is a good article on Understanding just what your guardians job is.
http://www.sonic.net/~cdlcruz/GPCC/library/workwhy.htmAfter you read all of this, get back with me if you like and I'll be glad to help you all I can.
Jackie Wood
Tanimara Great Pyrenees
tanimara@townsqr.com