Well, it does sound like what you are describing is what is called a backyard breeder. Most of these breeders are not really bad people but they do not health test their dogs, they do not inform their puppy buyers about health issues, and if their puppies don't work out in the homes they placed them in, they don't take them back. When you buy from this kind of breeder, you are contributing to the shelter/rescue cycle because though your dog may never need rescue the fact the breeder made money by selling that puppy to you will encourage them to continue to breed and there will be pups that don't work out and will end up in shelters and rescue.
I would say that responsible breeders are hobby breeders. None of us that are doing all the health testing, making sure our puppies are well socialized, that the mom and pups are getting optimal care and regular vet checks are doing it to make money. Many times we are lucky to break even with a litter and if there are any complications a breeder can easily end up with quite a bit more expense than they will ever recoup. We are also committed to those puppies for their entire lives, they will not be a burden on rescue or the shelter system because they always have us to come home to.
That being said, don't beat yourself up over where Beegin came from. Many people don't know how to tell a responsible breeder from a BYB. When the breeder says they are a "small operation", "there puppies are home raised", and "both parent on premise", these all sound like good things to people new to finding a purebred dog. Even the ever popular "champion bloodlines" are phrases used to make a breeder sound good to a buyer trying to sort the wheat from the chaff. Most responsible breeders don't advertise "champion lines" their dogs either are champions or are not but they will gladly tell you what they have to offer the breed by being bred. Most responsible breeders do not own both parents, they choose who to breed their bitch to based on which dog will best compliment her in health, temperament, and conformation and often that dog is not the one in their house. Many people unfamiliar with purebred dogs are surprised that I didn't just breed Nicky to Rally and have a hard time understanding why I went to Los Angeles and Phoenix for the sires of her litters. We won't even go into how utterly confused they are at the thought of breeding a frozen semen litter. Home raised doesn't tell you how well socialized the puppies are, a responsible breeder will happily tell you how they raise their pups and how they ensure that they are getting the proper socialization to become well adjusted dogs.
Puppy people benefit greatly from the dedication of the responsible breeder. I live with my dogs and we have many hobbies in common, they like to chase a plastic bag around a field and I like to watch them do it. They like to run around an agility ring doing obstacles and I lilke to direct them. Because I love having dogs to do this with, and I want them to live long healthy lives so I can enjoy their friendship for a very long time, I select each breeding with that in mind. The pups that don't stay with me go to carefully screened homes where they can be a special part of someone elses family. Each one was bred to be wonderful companions, with health, temperament, and conformation as the focus so they can all have the best chance of being long lived, healthy, and with their owners for as long as possible.