There will probably always be too many and too few depending on the type.
Even one puppy mill will be too many.
There will always be too many back yard breeders.
There will probably always be fewer responsible hobby breeders than there should be.
The most scary of all though are a sub-group of back yard breeders. For the lack of a better term, I call them "Wool Pullers". These folks are really dishonest either through lies, telling only partial truth, or withholding information from puppy buyers. It is the goal of these folks to "look" like a reputable breeder and they get the same or nearly the same price for their puppies.
Here are some examples of behavior these people ingage in.
Getting OFA clearences for things that are not in or GRCA COE like pattlar luxation etc. then promoting their dogs are OFA'd even though they did not test hips, elbows, hearts or eyes.
Testing for only hips or just hips and elbows.
Telling puppy buyers dogs under two have clearences. Prelims are not clearences. Then continue to breed them their whole life on these prelims.
Breeding dogs with missing clearances. It is a pretty good assumption that if you see a dog with an elbow, heart and eye clearence: they did not pass on hips. If you don't see hearts and eyes, you need to ask to see them.
Breeding dogs with failed hips, failed elbows, failed hearts, hearts by practitioner (current dogs, historically frozen seamen dogs would have had the clearences recommended by GRCA at the time they lived, and we know the wool pullers would not be paying the kind of money it takes to breed to one of the frozen greats anyway) juvinial cataracts,(I know this is a hot point, I personally would not breed this dog at all, but Wool Pullers would and most importantly would not disclose) Grade 1 elbow displaysia (again, I know this is a hot point, I personally would not breed this dog at all, but Wool Pullers would and most importantly would not disclose) and severe allergies.
The other thing they will do is tout their success in the show ring, counting on folks not knowing the difference in levels of competition. I recently finished a UKC Championship in one weekend. An accomplishment I an very proud of. That however does not mean she is at the same level as an AKC Champion or Grand Champion. Now, she is 12 months old and I think she will get an AKC CH as a mature dog, but it is not the same and I know it. Wool Pullers don't educate their buyers, they just want to impress buyers with the Title of Champion, no matter where it was earned. I am all for competition and there is value to every level, my issue is when it is used in a dishonest way to inflate a price and mislead a buyer. For a large price tag I would expect more accomplished parents no matter the discipline, conformation, hunting, obedience, agility, etc.
We all talk about how important education is. It of course is critical when a puppy buyer is serious about a healthy puppy and is willing to research and wait. This is why Wool Pullers are so scary. Even the most informed first time buyer can get taken in by these folks.
It is something a lot of us who have been around the sport know exists and that is why on almost every single "I think I have found my puppy, litter, breeder" post people will always say "be sure to check the clearances" or "do your due diligence and check on www.offa.org". We know there are Wool Pullers out there hoping you don't know enough to realize the dogs they are breeding should not be. They are hoping you will fork over your $1000-$2000 for their risky or less proven puppy instead of paying the same down the road for a puppy who is from cleared and competitive stock.
I guess my whole soap box comes down to BE HONEST.
Everyone is going to get their dog from where they choose. I just think no matter where we buy, we should all be able to count on honesty and it is so sad, that we can not.