Why Must My Dog Be Odd??

My pup is an adorable little Bichon.
He is about 3 years old and his name is Ben. Since he got old enough to have an opinion he has been a bit odd and afraid of men that he does not know. He is frightened by many things and often acts out barking and lunging when he is nervous. He nips pant legs and once nipped a person that he is afraid of. Never hard enough to leave a mark but enough to scare people away. He will only get you when you walk away and never head on. He hates delivery people, landscapers, and the postman. Well, pretty much he hates anyone who comes here to do anything.

He is skidish but has been great with children (prefers to chase then be chased). He is afraid of most larger dogs but seems to love smaller ones. He loves his kitty friend but chases neighborhood cats and other small animals.
Here is the worst part. He is protective of food, bones, and treats. Not the normal attack mode dog but in an odd way. A few times he has growled and gone after the cat if she dared to walk by while he had anything special. Of course we yelled at him and now he either shakes when he sees it, too afraid to go near it or goes and hides under our bed in fear and refuses to even make eye contact with the item.
He will still eat any human foods and tries new things (until he freaks out). So today he is eating the baby's left overs out of a bowl and I lean down to take it.. he snuggles up to me, stops eating and growls when I touch him too much.. It is sort of comedic. He snuggles closer and licks my face then growls if I touch him too much while the food is still around. Nothing more and he gives it up without a squeak but it is like an automatic reaction that he has to let out the snarl. Then when I tell him "no" or "stop" or even call his name firmly, he becomes deathly afraid of the food. It is as if he knows the food makes him crazy so he can't allow himself to even look at it. He runs the other way. What an odd dog. He allows the baby to take things from him, toys and bones and such. But I don't dare give Ben anything good while the baby is down walking around.