Everything depends on the dog, there are little dogs that can eat chocolate and not get sick others can get very sick, there are big dogs that eat chocolate and some get sick others don't.
Milk chocolate or not, its not good for dogs and there is no reason ever to give them some. Even if it weren't toxic to them they don't need sweets as this can give room for some nasty tooth problems later on. And while, yes, milk chocolate is diluted, to say that its not toxic to dogs would be the almost similar to say that arsenic diluted in water isn't poisonous to us...it doesn't make sense.
Glad to hear that you personally don't feed your dogs chocolate though.
I'm closing this thread as I think we won't get much more out of this conversation