I have to say, I DO play tug with my puppies and dogs. It is the first way I motivate them to bring objects to me. Objects returned to me gets a short game of tug. I vary between releasing the tug and letting the dog return to me to re-engage and solicit me to tug, and taking the toy to toss it again. Yes, I am always in control of the game. I start the game, and I end the game. Yes, my dogs growl and make all kinds of noise when we are playing this game, but in my experience this is not a bad thing. It is a way for a dog to release energy and it builds drive for the dog to return to you and ask you to play tug with objects instead of playing the duck and run game.
I agree with this 100%. We play tug of war with all our dogs and played with our puppies this spring. I always tell anyone who plays with our dogs the game ends with you throwing the toy, The dog never "wins" the tug of war, but they still enjoy playing. Our dogs are beagles, a lab and a shepherd, so they maybe less likely to want to nip then other dogs though.
IFor the biting the hands the two things I have found that work the best are the Yipping like they really hurt you and then ignoring them (they learn the game ends if they bite) and for dogs that didn't work with (usually the most outgoing) I did the hand in the mouth thing. That is what my mom always did with our cats and dogs and it does work. You make them associate your hand in their mouth as an unplesent thing.