The show side of GSD's are a small portion of the GSD registration, The posts above are correct a breeder breeding for the show ring keep one or two puppies the rest go to pet homes, all the pet person should be concerned with is that the puppy is a good representative of the breed, coat ,colour,length of coat should not matter, I love the breed with a passion no matter who breeds them.
Health and Temperament are the most important.
I think as been suggested a two tire Registration system would work. Although I believe all animals no matter what breed should have all relevant health certificates before breeding, the KC will never agree too much lost revenue.
Different colour Reg forms for dogs that comply health wise. Can work and will give the public the right to choose who they buy from.
I am strongly against any breakaway from the KC, even though I think they should be more responsible.
Sometimes you are better off with the devil you know, than others taking over the breed with their own hidden agendas.
Regarding the long coat at stud (C Lauser Heather's dog ) this male is from an outstanding litter of ex Hips,Elbows,SchH, qualifications, like any other dog he should be judged on his Qualities not his coat!!
Off my soap box now
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R.I.P Scouse xx Saffron xx and Roxanne xx I will Never Walk Alone..Still Miss you all. 
