I think it's strange that a coyote would venture around your property in the daylight. Was it hunting something (can't tell what it has in the fire pit). I've always been taught to be extra cautious of a coyote that doesn't stay 'out of sight', because it may be sick (in which case your REALLY don't want it anywhere near your dogs).
Pretty or not, animal lover or not, nothing good is going to come from one that is bold enough to make repeat visits to your yard. I heard coyote skins are still fetching good $$$, .