We do agree with you here. Although, I'll note, that the requirements you give are actually LESS than most of us demand of reputable breeders! (exception being the standard, because of issues with working and show lines, but that's another discussion). But your 2%-3% is a massive underestimation of the number of people who furfill the requirements you gave. You shouldn't be taken in by advertisements or claims that's true, . . . they are often lies, and we know that. You have a very negative view of breeders in general, coming from where you come from. But there are far more reputable, and just decent, breeders out there than you think . . . you just don't hear from them much at shelters, because their dogs don't end up there!
You also have to understand that dog owners of our stripe, whether breeders or not, feel under attack ourselves. We are blamed for the dog overpopulation problem, for acts of cruelty, for the pervisities of some show owners . . . and we did not cause any of these things. We struggle against them as well. But we are the ones: the small, responsible breeders, the working dog owners, even the dog lovers who have a number of pets, who are the first to get nailed by legislation intended to "protect" dogs. Not only does it often do the dogs no good, it hurts many dog lovers and responsible breeders. So, if we bristle, that's why. In fact, one thing that makes me really sick is that all the "anti-breeding" legislation excepts "Commerical breeders" that is, puppy millers. Sure, the worse puppy millers are nailed (they are already breaking the law) but most of the millers who sell to pet stores are USDA approved, and safe. Meanwhile, the responsbile breeders, the law abiding breeders, are crucified. You might nail some BYBS, but in the end, that's all you've done. You've put the good people out of business, excepted the millers, and the BYBs and mills with no regard for the law just go further underground. So if we are touchy about being grouped with those people, about statements like yours, its because they are used to destroy us, or the breeders we associate with, or even take away our pets. They justify these laws . . . and, its not true. Its ALOT more than 2-3% especially with the definition you gave.
Just as an example, my father took in beagles from a very old, respected, well-bred pack. That was the entire pack. He took them in because an "animal welfare" law was passed in the jurisdicton the kennel was in that made it funcitonally illegal to have a pack of hounds there. The hounds had be given away, or destroyed. Dad took them, and expanded the kennel to do it. Did that law help those hounds? Did it stop the BYBs and mills? No, but it destroyed a very respected pack of working dogs, owned by very responsible people. If my father hadn't been in the area, I'm not sure what would have happened. No one MEANT to wipe out that pack, but that's the way the law was written. By conicidence, Dad lives over the county line . . . otherwise, it would have been him as well, and two of the best packs in the country would have disappeared, along with a long standing tradition of hunting, superb hunting lines, and a whole clique of hound lovers who also do their part. It didn't stop the milling, the BYBing, the dog fighting. That kept going, it went underground, it slipped though loopholes. But it destroyed a responsible breeder, and pack hunting beagles almost never leave the hobby anyway, so those dogs weren't ending up in shelters . . . though they might have if another beagler hadn't stepped in. That's my personal anecdote. But I hope you get my point . .. statements like that are not only false, they are harmful.
As for breeding at a show, I think everyone thought that doing so in public was tacky, that this mating was a bad idea. Many of us, including me, think that showing a bitch in heat is a bad idea, though I can see the other side of it, after all these things don't always happen as planned! It would be a shame to miss a big show because of it .. . but I don't think I'd do it.
However, I will conceed that bringing a bitch in heat with you to a show (and keeping her off the actual show grounds) to meet a top notch dog for a breeding because its the best way to get both dogs in the same place at the same time, considerng the price of gas and air travel, not to mention the cargo issue, is something I'd not thought of, but strikes me as perfectly reasonable, assuming you keep the bitch AWAY from other dogs and its a breeding that you were planning on. Otherwise, how else to get the best dogs and bitches together? My dog is a spayed mutt, but even if she were a grand champion purebred, I'd never fly her somewhere unless there was absolutely no other choice. Meeting the dog at a show sounds like a good way to get them together to get the best litter possible.
But this . . . it was tacky, the bitch's owners were highly questionable, it does not seem to be planned ahead of time, and I think the owners of studs should be very picky about who they allow their dog to mount, because otherwise THEIR name and reputation will be linked to a shameful operation.