Reading your story, I can't help but think of the pitbull that has a terrible association with tragedy. I have a friend that had 2 pitbulls. One did actually attack him - he got spooked - and he decided it was best to euthanize him. His other pitbull is the sweetest thing out - until she meets another unknown dog.
I'm not entirely convinced she would destroy one, but he doesn't want to instigate a horrible situation so always walks her on a leash and is mindful of other dogs about.
As you said, like apartheid, the labelling of animals is ingrained. I'm a firm believer that it's the owner who instils behaviours in animals. You deprive an animal, they will react. You teach them to attack, they will. You treat them kindly, they will reciprocate.
I would never approach ANY dog, not knowing what they have been taught.