Although I can understand people saying that if the Best of Breed dog fails, they should put up the next dog, I kind of think there is a benefit to not doing so. I assume (I know very little about conformation shows) that the breed judges are often associated with the breed they are judging? If they know that by putting up an extreme example, they are potentially putting the breed at risk of not competing. Rather than letting them just vet check dog after dog, until they find a sound one, the judges may chose to go with a more moderate dog right from the start.
I'd like to see all breed winners tested, for that reason, and because choosing just the "high profile" breeds doesn't sit well with me.
My other thought about it is based on rumors, but still holds true even if the information I heard was wrong. While I don't think a reason for the bulldog failing has been made public, I had heard that he passed the physical exercise portion very well. I think that, especially in breeds that are so riddled with a variety of issues, the baby may be thrown out with the bathwater. Let's say this was a bulldog who (for the breed) had exceptional respiratory soundness. He could run/jog/shuffle around the ring without sounding like an old man with a cold sleeping on his back. I'd say that's kind of a big deal. So if this same dog has a skin issue, do you pull him? Do you say he shouldn't be bred? Or do you chose to breed him to carefully selected females who may be able to pass on his improved respiratory function while hopefully improving upon his skin issues? If the breeds are going to be "saved", we have to start somewhere.
Random musings from one who has no dog in the fight.