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So, don't try to say that I don't love dogs and that I want them put outside.<
Here is the fact of the matter. _IF_ you want all hobby, or family breeders under inspection, you bring them under the Animal Welfare Act, which is under the USDA. Then you have the regulations against keeping dogs in the person's residence. You can't have it both ways; this is the price of mandatory, nationwide inspections.
SPCA's are local, and do not have jurisdiction. If you have local animal control doing inspections, you not only risk spreading heaven only knows what disease from kennel to kennel, but you place an undue burden on animal control, from a monetary, and human resource point of view. Animal control can't even make everyone leash their dogs, but we're now going to expect them to inspect everyone who raises a litter of puppies a year?
Were you aware the AKC inspects people who breed 7 or more litters a year? They do not have regulatory powers, ie government power, but they can revoke individual registrations, suspend a person's ability to use the registry, and issue fines. If a person is convicted of cruelty to animals, his privilege to use AKC services is suspended, sometimes permanently.
Of course, if a shady breeder is blackballed by AKC, they go to the Continental Kennel Club (CKC) or some other "alternative" registry, and John Q Public buys the pups nonetheless. Papers are papers, after all. And, of course, the buyer has no responsibility to do any checkup on the breeder from which he buys that cute little Yorkie-Poo for his kiddies.
AKC is a non-profit organization. It keeps the stud books (pedigrees) for the individual breeds, and it holds dog events, including field trials, dog shows, obedience trials and agility trials, to name a few. It cannot keep dog breeders honest, nor does it write individual breed standards. Thus, the Bulldog Club of America, a member club of AKC, decides whether the dogs have pushed in faces, not AKC itself.