Is that because of BYB's
Long answer: IMHO the prevalence of timidity in the breed began with BYB getting ahold of the breed and their temperaments going to hell, and then people (Joe Public as well as newbie breeders) began to think that this sort of temperament was normal in the breed... that it was acceptable... and they allowed it into their breeding program. I think some people also completely misunderstand the standard - they read "reserved with strangers" and think that means "does not want to go anywhere near a stranger" is okay. The standard actually says flat out that shyness and timidity is a FAULT in the breed, but some people just don't make it that far in reading the standard. ;P
So it is a problem in the breed, but it is not normal for the breed and if you do your research and find somebody who knows what they are doing and you have met their dogs, you most likely will NOT have a problem with an overly shy dog. That said, even with a good breeder, sometimes stuff happens and a dog goes a bit off (see: Pepper) - but I think that goes for a lot of breeds. I have heard of it with border collies too... dogs that are very sensitive, soft to corrections, shy, nervous and flighty. I sorta think the herding dog nature sometimes lends itself to things being a bit easy to get out of hand... there is a thread here from maybe a few years back where we were talking about the common misconceptions with border collies and problems in the breed and I felt like it was very similar to the way people perceive shelties. Some of that also goes back to how much is nature and how much is nurture, besides the fact that with genes, you are playing a bit of a crapshoot anyway.