I can understand the points of view of both of you on this one. Not a nice situation at all, especially as it will be difficult to rehome Daisy because of her mistrusting nature. Things like this can be genetic but they can also come out of nowhere. Our Monty and Mist threw a daughter, Tess, who was really nervous with strangers although she was good with the kids she lived with and got to know the friends of the kids who visited often pretty quick, she was quite nervous with strangers and very aggressive towards strange visitors to the house but neither of her parents or their parents were anything like that and our Jess, her older sister, is nothing like that either. Tess was like this from being a pup and had no reason for it to develop. It was just the way she was. Daisy's parents might have had behavioural issues but they may not have...like with Tess's parents who were both confident and enjoyed getting fusses from strangers.

Still, the most important thing is the safety of your child and if you believe that Daisy could be a danger to him when he's old enough to walk, it isn't really safe to keep her.

Some dogs do dislike kids full stop and won't have their minds changed about that. The way they'd treat an annoying pup like snapping at it when it bothered them would be deemed acceptable behaviour when it is a pup they are snapping at but if that dog displays the same behaviour towards a child, it then becomes unacceptable behaviour....even though it's the same thing to the dog. Pups are covered in hair and this protects their skin and the chances of them ending up with injury from being snapped at by an elder is very minimal but children have no hair on their faces and thin delicate skin which is easily broken even without an actual bite, just from a tooth scraping against it and so they are more likely to come out with minor injuries even from a dog who only intended to make them sling their hook and not actually hurt them. Not all dogs are as diplomatic mind and might go further than simply snapping at or nipping the child.

When I was a young child, we had a red and white Border collie called Jim. He never liked us children either but he wasn't frightened of us, just growled a bit if we went too close to him and ignored us otherwise. None of us ever got bitten by our Jim and he was still happy for us to throw a ball for him...just so long as we didn't try to touch him. I suppose he taught me how to respect and leave dogs alone sometimes...that they aren't toys. We were warned by our elders that he might bite us if we ignored his warning growls. He died when I was about 7 and he was 14 so already getting into his senior years by the time I was able to walk around.

Has Daisy had any contact with your baby so far and how does she react? If she's familiar with him by the time he starts to walk, she might not be frightened of him like she is the other children that have visited but if she does show that same behaviour, it's better to be safe than sorry where children are concerned...especially small ones who don't understand the dangers of approaching a dog that doesn't want to be approached.