I think there's more to blame in that story than just the tow dolly. I've towed many different things, many many miles on a tow dolly and never had a problem, except a little unstable when I used a short wheel-base vehicle as the tow rig (an xj)
my question for this thread would be: has anyone ever towed something on a tow dolly backwards? If i break an axle shaft in the rear up at URE, i was toying with the idea of strapping the rear axle down and tying the steering wheel straight and towing it like that. The only problem i can see is not being able to make more sharp turns since there won't be any wheels to turn to assist the small range of movement of the deck. Anybody ever done this?
I've had my xj towed by a tow truck before and they lifted the rear wheels up and dragged the front and it seemed fine.