This is a great discussion...I never saw anything wrong with it because of safety. I'm more concerned with giving my kids a little independence and keeping them safe than I am with what other people think. Of course I never had one of those obnoxious people actually say anything to my face...
I found the most adorable little set that I used to wear with my daughter...it was sort of like a front pack for me to wear with zip pockets and it had a retractable lead on it. She wore a little bear front pack, like a little bear purse, and it had a clip on it that kept us together.
It was so cute...we used to take walks and she'd fill her little purse/pack with rocks or treasures. To be honest, it's one of those favorite baby momentoes I can't get rid of!