The AKC is a registry for pure-bred dogs.
They maintain the stud books for our breed in the US.
That is their main function. They do some other stuff, they offer performance and conformation shows. But the point of AKC papers is to PROVE that the puppy you buy is a purebred dog. Nothing more. They do not require health screening or titling or conformation evaluation.
Probably the majority of purebred dogs should not be bred. That does NOT mean that ANY dog that is not pure-bred should be bred to produce an affordable companion animal. Sorry, but they should not be bred on the grounds that they cannot prove their ancestry. And the many pure-bred dogs that you mentioned, should not be bred on whatever grounds that they fail to adhere to the standard.
If a a farmer has a dog of any origin that is excellent with his livestock and he uses that dog to manage his livestock than he is free to breed the dog, and use one or more of its offspring to do the job. I see no problem with his thinking. He isn't concerned with a GSD or an ACD, he is concerned with his cattle or sheep or whatever, he has a job to do, and he has a dog that is excellent at that job.
There are plenty of dogs that need companion homes. If people want a cheap dog, they can go to the pound, and hopefully save a dog from being euthanized because the 6'x3' area that he inhabits is needed for another homeless dog.
2 wrongs do not make a right. Just because there are poorly bred pure-bred dogs out there, does not mean we should just throw up our hands and breed anything and everything that moves, whether it conforms to any standard, or whether or not it has papers. Without papers that have some validity, you have no way of knowing what is behind your dog, no way of knowing that you are not breeding a bitch to her sire, a brother to a sister.
Arwen, CD RN CGC
Whitney, RN CGC
Tori, RN CGC
Jenna, RN CGC & Babs, CD RA CGC HIC
Heidi, RA CGC
SG3 Odessa, SchH1, Kkl1, AD
Ninja, RN CGC & Milla, RN CGC
Joy, Star Puppy, RN CGC
Dolly CGC & Bear CGC
Hepzibah & Hannah