seeing a dog being killed when it's crushed by kitten pirates in a hot air balloon and reconstructed to have a baseball mit on it's head and a chicken stick for a leg. When it's that over the top you can't take it seriously. Plus when people see dark animation and dark humour they instantly think it means the show is trying to scare people. Steve crying is funny because it was so over the top. The episode could not have been done with humans, that would have caused a much more solid uproar. Just think of the dogs as a metaphor for humans and stop focusing on them being dogs or how they died and the episode has a good moral compass. Also there are more solid jokes here than in recent episodes.
I would suggest watching more episodes if this was your first taste of the show, and not everyone owns a dog, but everyone can relate to losing someone important to them. There was much more comedy in this subject matter than recent episodes of Family Guy.