I agree with Fran.
It doesn't have to be black and white. A breeder can gush about their dogs as pets AND still emphasize their titles and health testing. I want both. Producing good dogs isn't the only important thing... I mean, I still want to be satisfied with the conditions they're being raised in before I give them my money and support anything. I'm not saying kennels = crappy conditions. I'm just saying I'm not going to purchase from a breeder JUST because I like the dogs they produce.
But I think I mentioned at the beginning of the thread that Juno's breeder had kennels with indoor/outdoor access. Just so she didn't have all the dogs loose at one time. They were still house dogs. So I can't really form a judgment about using kennels cuz it totally depends on how they're being used.