Dog breeding is illegal in most states and most localities. For that matter, so is owning a kennel. Or even owning a dog, in most places.
What? Don't be ridiculous! I'm a licensed breeder! I have a kennel license! My dog is licensed!!
Do you understand what a "license" IS?
A license is special permission from the government to perform an act or conduct an activity that is otherwise illegal.
So the truth is -- dog breeding is illegal, having a kennel is illegal, and even owning a single dog is illegal. Some people get special permission to perform this otherwise-illegal act. But the cost of the permission (license) is often prohibitive, if not for itself, then for the mechanical requirements (what you have to build) and/or the conditional use permits (another form of government permission to do something with your own property, that would otherwise be illegal... such as own a kennel).
According to municipal estimates, 75% or more of all dogs are unlicensed. And I'd hazard that 90% of all hobby breeders are keeping and breeding dogs illegally -- at the very least, in excess of their license (which is to say, their limited grant of immunity from prosecution). Which means -- breeding or even possessing any of those dogs is illegal.
Next time you complain about all those terrible unlicensed kennels, think about who that really is, and that what you're really asking for is that ALL dog breeding and ownership be declared illegal -- except for those special individuals granted a license by the government.
And when you declare that "most of those breeders shouldn't be licensed anyway" ... consider that as the regulatory noose continues to tighten, someday you too might not be considered good enough to get that special permission to breed and own dogs.