There is an ethical version of breeding that would be good for society though (and I imagine this exists to some extent outside the mainstream mainstream). E.g. if a breeder decides "I want a hypoallergenic dog between 40 and 50 pounds with a calm demeanor who is otherwise maximally healthy" instead of worrying about the the nitpicky specifics of their appearance, that would be a benefit for society.

It's more the culture of dog breeding and showing than the concept that's harmful.