I think it's sad when people assume that animals have no conscience or thought and that pets don't care for their owners at all. Just because they don't speak doesn't mean they don't communicate. And just because you don't understand them doesn't mean they can't feel things like affection and love. I know many animals are hesitant to trust humans, and that is because of our communication barrier. Trust me, if you learn to "speak" with animals, they appreciate you for it. They may have limited brains, but they are not THAT limited.
When I had a dog, talking to him was the only thing that kept me from talking to myself. But you know what? I think it amounted to the same thing. You are correct that animals are smarter than we think they are, and certainly some limited communication with them is possible, the extent of which depends on the animal and the human involved. Animal behavioralists study the meaning of behaviors and how they facilitate communication between animals, so it's not a novel concept.