Yeah I've had the same problem with the movie ever since I was a kid. The only explanation I figured then was that even as a dog, he was kinda a dumbass (note how clumsy it is chasing him vs. Dana's dog Zool was able to make arms appear in her couch and bring her toward it - giving you the impression that it was more powerful).
The other explanation I have come to more recently is that even though the people get possessed, they still retain their personality, it only accentuates the quirks. Kinda like how the creature in The Thing can store people's memories but at the same time can instantly transform into a violent monster once it gets cornered. With Dana it made her hyper-sexual (like she was suppressing it in her normal life) and with Louis it made him hyper-dumbass (I am sure he was aware he was kinda stupid and was doing his best to suppress it too). Note that even Zool was also kinda (comically) stupid because it believed Peter Venkman was the keymaster when he said yes, 10 seconds after he said no.
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