I think it's a major mistake to try and take the work out of working dogs. When you produce dogs whose backgrounds require a job or skill, and then ask the dog to be a sofa pet, you ruin the genetics which have been produced through the ages.
Working or herding dogs should have some form of job or job training. I am always asked about my Border Collies and if they are "hyper." HYPER! No, they are sheep and goose herding monsters...needing only a job and the pleasing remarks from their owner, ME!
Many of the working and herding breeds can be found doing K-9 PP, security, or law enforcement work. They have been bred to work and work hard in the venues in which they were placed. To remove them from an assigned duty and taking the working lines genetics away from the "calling" is nothing more than nonresponsible ownership, as I see it.
Pets are nice, but my PPDs and Border Collies are both worker and trusted family pet. Dual purpose and workers which please. Taking the work out is a great way to produce nothing more than welfare K-9s...
I'm not sure whether Howard is talking about as in the long run ie. producing dogs without working ability or not giving your dog a necessary outlet to live a balanced life.
I took it as breeding for looks over working ability. I am a believer of the old adage that "form follows function". Either way, breeding for looks only or as you mentioned Dan, or not giving a dog an outlet are both wrong, just my opinion though.