Oh yeah, its important to let them correct each other. I wouldn't stop any of it because if they think correcting is bad, they will stop correcting and then just go straight for the fight. They can usually work out their relationships very well by correcting, unless you have 2 very dominant dogs.

Also, when taking off the leashes, I leave the leash on the most dominant dog for the longest. That way the submissive (or scared) dog doesn't feel trapped and can walk away from the dog thats scaring him/her.