Mary, it's not just a question (IMO) of showline vs. workingline. But I'll get to that in a minute...
First of all, I believe that breeding and showing a dog only for what is deemed attractive at the time is a bad idea for the reasons everyone has already posted.
And breeding for physical characteristics is not the same thing as breeding for physical
soundness. Form should follow function...if function followed form then the most many of these show dogs could do is just trot around the ring.
But as far as the information you're getting on the illnesses inherent in the GSD as a breed: Keep in mind that most of the books on GSDs you will see in the bookstores or petstores will be about the American Showline breed exclusively. Occassionally one of them will mention in passing that there is a workingline GSD, but usually it's only a paragraph.
Spending time on this board will make you forget that when you say "German shepherd" to your average American...the image that will pop in their mind is of the classic American showline GSD. In fact, people who see workingline dogs (especially the sables) will often think the dog is a mix of some kind...often of a wolf!
It's really difficult to even find a sticker or calendar of the GSD without the roached back and flat hocks and w/o the classic black saddle.
So, the majority of the info is on American showlines. I don't personally know the incidence of these health issues in workingline vs. showline GSDs here in the US...mostly because when a dog is diagnosed with any disease or illness here, they are listed as "GSDs" with no distinction made to their lineage. However, since breeding is a whole different animal in Germany, for example, I'm sure you could find some good data there about the health issues of workinglines. (You may need Babelfish to read it, though!
) It would be intersting to see the differences not just between working-line vs. showline--but also a comparison between GERMAN showline and American showline as well.
It has been my personal experience that those issues are much less common with the workinglines. Even bloat. Again, that's just my personal observation...nothing scientific.
But finally, remember that in the US...the American showline GSDs are very popular as pets. You never see workingline GSD pups at the mall pet stores, for example. Just American showline.
Therefore, they are going to be victims of the BYBs and puppymills just like Golden Retrievers, for example. It's very true that the more popular a breed is, the more bad breeding happens and the more health and temperament issues that come up as a result.
So, to answer your question with my opinion...I don't think the GSD breed needs any outcropping. It needs LESS mucking around! It needs responsible, educated breeders that breed for health and temperament and function first and looks only when those three are demonstrated.
Carbon