Go talk to guys who sell these dogs to LE and the Military. They either go to europe or have agents there. They look at 100s of dogs each year. You are much more likely to find a dog with the right working traits and health in the malinois camp. The reason being they are mainly bred for work not shows or any other sillyness. Dog cant work = its useless and not bred. What your likely seeing is bad training and handling. Mals are not the breed for everyone and thats been what has saved them from getting ruined.
Now within mals there are different lines
FCI lines more sporty and not known for consistently producing hard dogs. However they have started mixing in some KNPV dogs. Many of these dogs get sold to LE.
AKC showline not very many of these. The workability and aggression has been bred out of them. They do shows and are used in soft sports like obedience and agility.
KNPV lines. These are not registered dogs though they have a pedigree. These are dutchy\mals. They are bred for hardness, aggression, athleticsm and nerve strength. They cull hard. The entire program is oriented towards selling the dogs to military or LE.
They consistently produce good dogs, that 99% of pet owners would never be able to handle without getting eaten..lol.
On a personal note when you work a mal or dutchy if its decent it eclipses a good gsd. Its like comparing a sedan to a sports car. Faster, harder and more precise.
The GSD is heading out the door for many reasons. Just look at many of the threads and posts on this board for your starting point. There are still and will always be some good onesbut not even close to the numbers of mals / dutchies.
Such shy animals are in all circumstances an encumbrance to their owner, who must be ashamed of such a dog, and a disgrace to their race. Under no circumstances whatever must they be used for breeding, however noble and striking they may appear.