As for the dog, theres alot paperwork in bringing him in and out, make sure you have a vet waiting for you at the airport, or however you arrive in honduras, i had fantastic results with Sarlynea(?) at Little chanps Vet clinic in SPS.
Id keep the dog in while diving, poisonings do happen on the island, i know of a woman that lost hers cause someone threw poisoned meat on her porch. Plus theres an old geezer a-hole named Jim Williams, hes some kind of broken down old traffic cop, not sure if hes even really that,he will try to lie and say hes the chief of police, DONT FALL FOR IT!. If your dog runs off leash, he might try to pull some b.s. with you. Also bring some protection when walking your dog, some people let their rotweillers and pit bulls run loose, esp. at night, more than once ive had to use my dogs nine foot chain as a weapon.
I rescued a stray there and had some trouble with him as often times the locals abandon their dogs then when touristas fix them up, they want them back. Went through some paperwork hassles but eventually got a bill of sale from the city for him.
As for apartments, countryside has some good quiet ones, as for food, Daves is great, Bush's supermarkets has more and more "real" food, check out
www.aboututila.com.
As for the dive shops, theyre pretty much the same, they want to run you through asap, once they have your money, you fall into the background, so DONT make the mistake of paying for your courses in a package, the 10 percent or so you save isnt worth it, the only way you get your moneys worth out of them is to make them hungry for the $$$ for the next course you may take. Once they know they have you to DM or OWSI you're screwed.
Also dont fall into the MSDT trap just a waste of money, get work as an OWSI and file the papers yourself with PADI.
IMO the fream of cheap living and friendly locals in Utila is pretty much over....