No offense dude, but I know a lot more about breeding than you do. I know like 30 dog breeders. They are good people who devote their lives to the betterment of the breed. They do not do it for financial gain. They usually make back about the same amount that they invested when they sell a litter of puppies, depending on the size of the litter. I was in a Basenji club with these people, and they knew who the bad breeders were (the "puppy mill" people), and the rule was that anyone wanting to join the club had to be voted in because they didn't want to include those types of people. They also reported those types of breeders to the authorities and did everything they could to tell people who were interested in the breed to not support them. There are strict guidelines for screening out genetic diseases, and a good certified breeder is expected to avoid breeding dogs that have a tendency for those traits, no matter how pretty that dog might be. If anyone in the breeder community suspects that you are doing otherwise, you can expect to get your ass handed to you and be ostracized from the dog breeding community. One of the breeders I know is actually an animal control officer who specializes in raiding puppy mills and hoarder homes.
This club I was in constantly held fundraisers for raising money for pet health research. In fact, in the time I was there, they raised a lot of money for an eye disease that sight hounds get, and a cure was actually found. Also, nearly all of these people would gladly take back any dog that they had bred that might end up in a shelter.
Many of them were involved in the Basenji Rescue, which will take any dog that is at least 1/4 Basenji. Many of the rescue organizations will take mutts as long as their mutt is partly that breed. For example, I found a half Shiba Inu in the street, and the rescue organization said that if I had trouble finding a home for him, they would come pick him up (and the guy was prepared to drive down from Northern CA to get him).
The breeder I mentioned earlier who makes you sign a contract stating that you have to consult her if you can't take care of your dog anymore; she's been a great friend to my family for 15 years. I have seen her take back dogs that she bred who were 13-15 years old. I have seen her take back dogs that were not "show quality" and had behavioral problems. I have seen her take care of a puppy that was born with bad cataracts and nobody wanted (until she finally found a home for her a year or two later. Cute dog, I wish I could have taken her). She does it out of love for her dogs, she does not do it for profit, and she does not do it because she is competing with other breeders. She takes them back because those dogs are her responsibility. She also requires any dog going to a non-show home to have the dog spayed or neutered, which is also a normal thing among good breeders.
You might have your suspicions about people who breed animals, and you should. There are some bad breeders out there. But puppy mills and backyard breeding is definitely not encouraged by the AKC or any other breeding authority, and all of the good breeders out there (I guarantee you it is more than 1%) are firmly against those types of practices, and they do raise a very large percentage of the money that goes into anti-disease research.