I would argue that everything you posted proves exactly why you are not a backyard breeder.
While I appreciate the sentiment the following "proves" otherwise
3. Use of unapproved stallions and grade mares.
My stallion is not approved with any European, European wannabe or other sport horse registry. He is purebred and registered; but, so are my neighbor's horses which I would not wish to own or use for my intended purpose.
As I stated one of my mares is not eligible with the US registry and though I'm sure her breeder would make it so if I asked, he is deceased; so, in the eyes of the US registry she is grade.
And, 6. Selling said supposed "FEI Prospects" for chump change.
I know good and well that the rider/trainer has as much if not more to do with what gets to FEI than the breeder as long as it's got decent conformation, 3 pure gaits and a good mind. As I stated as one of my "wildest dreams" I wish to produce an animal that is not only capable but affordable.
My FEI critter cost me $4000 as a two-year old and against popular belief he is not an enigma or rarity, at least not in the breed I dabble with. Now he will never be capable of international competition but that is not my market or goal and since I'm not ashamed to say that, again, I am a backyard breeder.
Again, what makes who a backyard breeder is purely in the eyes of the beholder. For good or bad, breeders are not required to be licensed in the US. I choose to take advantage of that fact.