Heh… speaking as a Bay Area resident, I can say that many local stores are dog-friendly, and it's not necessarily dependent on how expensive the merchandise is. I've learned since moving here that you can almost expect stores to be dog-friendly by default (not necessarily restaurants). There's even a website devoted to promoting such practices, http://www.fidofactor.com.
I've brought my dog into Home Depot, Half-Price Books, the local Tool Lending Library, the frame shop, record stores, just to name a few places. There are at least five generously-sized dog parks within a 20-minute drive. Rumor has it that there are more dogs in the city of San Francisco than children. This is one thing I really love about this state!