Where I live in Vancouver the coyotes have been very noticeable this year. I love to hang out with them in the park and garden, and hear them howl with the cop cars at night. They are not pets though - I always keep my distance and keep aware of the possibility that they might sneak up on me.
I take care of an outdoor cat in the neighborhood, and yes it's possible that a coyote will eat a cat or small dog. I worry about her but there are many fences, she is smart as well as a good climber. There are many hazards in the city that don't have the positive sides that coyotes do, and I think it's important that we learn to live with them and honour what they bring to our lives. That includes rat control, which we rather need here.