It sounds like reputable breeders don't have to worry about this, Pat? As a reputable breeder will register the litter, and that would be caught(?) if a disreputable buyer tried to circumvent limited registration by going this route?
This would help people that purchase a dog that "was" AKC but they (BYB's or Puppymillers) don't want to do the DNA AKC requirement or pay to register the litter.
However, it bring up another point… just because a breeder "says" here is the pedigree, doesn't mean it really belongs to that dog. Of course that is one of the reasons that AKC started the required frequent sire requirement of DNA on file. And the reason that many BYB's and Puppymills then started their own "registries" If AKC were to say, OK you can register, but must be spay/neuters as it is with their PAL/ILP program (conditional registration) I would not have objections. I know of dogs registered and there is no way that the pedigee of that dog represents the sire and dam.