I really have to agree with you, if you make dog breeding ( or any species) an elitist attitude with nothing but a plethora of requirements, than you create a situation where dogs become out of reach to the general population, than you create a closed gene pool and more, not less health problems evolve. I personally believe while ideally you would have breeders who generally LOVE the breed and their criteria is to enhance the breed by producing dogs with beauty, brains and functionality, the reality is this will not happen. I personally have purchased 2 German Shepherds from top notch kennels that do all of the above, I also have in the past purchased Germans Shepherds that would be considered BYB puppies, and I had and have not had any problems with them, the people producing them had dogs they loved, with top bloodlines who accompanied them to horse shows or were real working ranch type dogs. I plan to show and title my young male, and yes, I do look forward to breeding him some day down the road. The reality is this breed is more likely to be purchased as a family companion than a working/show dog, and those are the dogs that are seen more often than not by the public, these dogs will represent the breed more than the show dogs, so their place in society is no less important than the exspensive show dogs, in fact it could be argued it is even more. The fact a dog is from a BYB does not automatically make them a poor specimen, the Shepherds I bought from seeing their parents at horse shows demomnstrated great temperament, intelligence and quality, just in a different venue.
I also breed Arabian Horses, that is a breed thats history is one of pedigrees and mares so cherished they were allowed to live in the tents with their people, 2 of the greatest Stallions the breed has ever known were both produced from backyard breeders, with nothing more than a mare and a dream, Kemosabi was born in an alley in Whittier, California, and Bey Shah was bred by pure accident when a trailer his mother was in broke down, they stayed at a well known breeder in California for the night, the great Varian Arabians, and bred their humble little mare to one of the stallions, creating this fantastic stallion. These two genetic masterpieces would never have been created if so many rules or hurdles would have been in place, or being looked down on because of perceived inferior pedigrees.