I have personally known a few dog breeders that WERE involved in showing, and their local breed chapters. They were not all that ethical. They were breeding for color, size, confirmation, IOW-they wanted to win shows and promote their kennels. The welfare of the dog was not their priority. Many inferior puppies were culled or sold cheap.
On the other side of the coin, I have known people that had a good dog, their neighbor had a good dog-and they let them have a litter of puppies. This is very common in rural communities. The emphasis was to get a quality dog that people wanted. No one cared if he had one blue eye and one brown, if one ear drooped, etc. They weren't in it for the money.
This is just what I've seen. I don't agree with anyone breeding anything irresponsibly, but it's never fair to generalize.