I think what you're really asking about is distraction training. Whether you do Agility, Obedience or any other dog sport, you have to have that skill under control. And, your instructor is right...the dog doesn't have to look you in the eye....lots of dogs work peripherally but, the trick is to get them to ignore the distraction after a quick glance and get right back to work without missing a beat.
Distraction training is usually part of advanced obedience with lots of proofing around strange sights, smells, noises. Typical distractors are fans with flag tape flapping, balloons, noise makers inside a lunch cooler, battery operated toys, containers of food, and yes, other dogs....we play the honor game (one dog working..another holding a sit or a stay), etc. Basically, teaching that a quick look is OK but, keep working...teaching them to ignore it. It just takes time and practice...with rewards, of course, for ignoring.
Distraction training is usually part of advanced obedience with lots of proofing around strange sights, smells, noises. Typical distractors are fans with flag tape flapping, balloons, noise makers inside a lunch cooler, battery operated toys, containers of food, and yes, other dogs....we play the honor game (one dog working..another holding a sit or a stay), etc. Basically, teaching that a quick look is OK but, keep working...teaching them to ignore it. It just takes time and practice...with rewards, of course, for ignoring.