If the majority of puppies come from BYBs and puppy farmers, and good breeders have long (often multi year) waiting lists, then demand for well bred puppies clearly outstrips supply by a long way.
Most people aren't willing to wait many years for a puppy, and I can understand why. It's not necessarily about wanting a puppy tomorrow, but a waiting list with no solid timescale is too much for many (I'd be happy to wait 6 months for the next planned litter, but if there was a 2 year waiting list even I'd look elsewhere...). I also don't think that anyone consciously sets out looking for a puppy farm - but many fall into the trap.
Is the thing that no one is discussing the fact that there is essentially a shortage of properly bred puppies? They say that if you're doing it properly you're not making money, but that obviously limits how many good people are willing and able to breed - and leaves a gap for the unscrupulous.
Would things be better if it was made practical for someone to make a modest full time income from well bred puppies in a home environment? I feel like part of this is that people's expectations of how much a puppy costs would need to be changed, to a point where profits existed and more litters were produced without compromising welfare. This would need to be combined with tougher laws and enforcement for puppy farmers.
I'm not sure what I'm hoping to achieve with this post, but I do feel that puppy farms will always exist while demand for well bred dogs vastly outstrips supply.