My family breeds AKC registered yellow labs, and while we don't show as much as we used to, we breed for the love of Labradors, not the profit. In fact, good breeders often lose money on every litter, even after the sale of the pup.
At least with our dogs, while we may not hunt or send the dogs to retrieve downed birds, don't ask our dogs, they'll do anything you want them to and cuddle with you every night.
The problem with "every breed should be able to do what it was bred for" and "they should go through trials before showing" is that some breeds were bred for purposes that are not acceptable under today's standards. Take the bully breeds for example. We can't send them off to face bulls in an arena just to be eligible to prance around a ring. Requiring trials for many breeds isn't feasable, and would result in breed discrimination and a worsening reputation for some breeds.
But yes, any show dog should be built for the task they were bred for, not exaggerated like some have become.
P.s. a lot of the labs in the show rings nowadays are overweight. Beautiful dogs, but a little husky
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