Mmmmmm.... thats a tough one.

On the one hand you absolutely have to monitor any animal around baby & insure that baby is safe & clean at all times.... this is something you already know (let me say I also have a very fluffy 'inside cat' & have struggled against family disaproval regarding her)

Secondly, you are infact living in someone elses house. It is thier generosity & hospitality which provides a roof over your head at the moment so you need to respect thier particular priorities (the dogs)

Is there a halfway? Do you have an open communication with DP's dad?
Without disrespecting him can you mention that you are pretty concerned & maybe trial leaving the dogs out or contributing to some really nice & cosy kennels (dog box) as an alternative? If that doesn't work can you suggest some boundries? ie. this is a 'dog free' section of the house?

Not sure if any of that helps.... just some thoughts & I hope you find a happy solution