The reality is that there are very few responsible breeders and they don't need to make money if they're breeding for the good of the breed.
The actual reality, from someone who has spent 30+ years around pedigree dogs, is that some breeders are crap but very many are fabulous. VERY few of them make any money - at best they may occasionally get a concentrated influx of money for a litter, having spent out many times that money over the past few years in pursuit of what is a very expensive hobby. (And no, I don't breed, haven't for years so am not defending myself.)
The trouble is that the good ones are being outweighed by the crap ones more and more each year, as the public jump on the designer dog bandwagon and pay no heed to where their puppies come from.
The farmers will just move on to whatever makes them a profit next if legislation reduces their money-making ability. The good breeders will be the ones who shut down, and then there will be no quality left. It's not like we can put the healthy dogs of good temperament 'on ice' until the rescue issue is cleared.
Sometimes putting an animal to sleep is actually in its interests.
I agree with this. So many dogs in rescue, so many being put to sleep, and yet rescues still re-home dogs that are never going to have an easy life, or give their owners one. I see one most mornings, turning somersaults and screaming on the end of his lead, with a muzzle on. I feel sorry for the dog, of course, but actually I mostly feel sorry for the owner who could be enjoying dog ownership with a more balanced dog.
I don't under-estimate the impact of that on those who work in rescue though.
There really is no easy answer.