I see dogs regularly where the X-rays look bad but yet the dog can cope with minimal lameness. Although I cannot say for certain with regards to your dog, many dogs with hip dysplasia will improve around 18 months of age as the joint capsule thickens, the socket infills with bone and micro fractures of the edge of the socket heal. Please do not treat the X-rays, it doesn't matter how the X-rays look if the dog can cope with day to day life and if this is the case there is no need for euthanasia. Where dogs are permanently lame then surgery can be appropriate in some cases and can make a big difference depending on the technique chosen. In order to reduce the chance of needing surgery it helps to keep them thin and to moderate exercise but not stop it. Feel free to PM me if you want a chat about your dog but I'm away until Tuesday so may not be able to reply instantly.