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Armadillos are actually much more dangerous to cats, dogs and other pets, as well as humans, and in many cases, they are more dangerous than you'd think! Did you know, for example, that the humble armadillo carries the same bacteria that is responsible for Hansen's disease. This is otherwise known as leprosy. Admittedly, you would need to spend an awful lot of time around the animal in order to catch the disease, but there is still a risk there that you probably didn't know about, and that's very much the case with all wild animals. They are responsible for the spread of disease, and with some of them, the disease risks are much greater and more dangerous.
It is quite rare for an armadillo to test positive to rabies, but it has and does happen sometimes. This means that you will most definitely want to keep your cat, dog and other pets away from the armadillo. It takes just one bite for your pet to become infected, and the same applies to you too. If your pet hasn't been vaccinated against rabies, the interaction will more than likely prove fatal.
Armadillos are very share animals, and it is very unusual to see them out and about during the day. If you do spot an armadillo out, and it appears to be acting a bit odd to boot, stay well clear. That could be a symptom of rabies - the animal could be confused and / or rabid.
Another disease that is commonly passed from armadillos to other animals, including your household pets, is salmonella. Salmonellosis, the bacteria responsible for the nasty case of 'food poisoning' can destroy an entire household in less than a weekend, and you, the rest of your family, and even your pets will come under attack.
Finally, we come to tapeworms. This is a common parasite passed from one wild animal to another, and pets often come into contact with it too. Luckily treatment is relatively simple and successful for your pets, and for you too, but can come with some rather nasty side effects, including incredible weight loss. The worm is siphoning food away from you, and that's why you lose the weight. The worms lay eggs inside the host, and these are expelled from the body in feces. When that feces is touched by another animal, such as when your dog sniffs it, the roundworm is passed on, and the cycle starts again.
Armadillos are much more dangerous to your cats, dogs, and other pets than you'd think. It is definitely a good decision to keep the two very much separated.
For more information, you may want to click on one of these guides that I wrote:
How much does armadillo removal cost? - get the lowdown on prices.
How to get rid of armadillos - my main armadillo removal info guide.
Example armadillo trapping photographs - get do-it-yourself ideas.
Armadillo job blog - learn from great examples of armadillo jobs I've done.