I think every breeder should health test, regardless of whether or not the dog is a working dog. I've seen plenty of high performance dogs get tested after years of competition and found to be dysplastic. Likewise there is a correlation between "fair" hips and hip dysplasia; It's easier to make good breeding decisions when you know where your dog stands, healthwise.
All the testing in the world won't eliminate every issue but surely it does help. Being a fanatical pedigree researcher, I see a strong genetic link with hip dysplasia; It isn't easy to 'breed out' like most people think. Taking chances on an untested dog is stupid if you ask me. It's not fair to the puppies who have to be born with painful or debilitating conditions.
I've heard many BYB's brag that they don't test X because they've never produced an X problem. How do they know they never produced a problem?? This is especially true with dysplasia. You never know unless you x-ray. Dogs have a high pain threshold. They might not start to show signs of pain until their senior years, and then that is considered "normal." They don't realise that the dog may have lived with this condition it's entire life. How sad. How ignorant.
I do know on breeder who does do the tests, but does not send in to OFA. She doesn't believe in OFA because she has known of breeders to substitute dogs for x-rays. So rather than OFA, every time someone wants to use her studs, she meets them at the vet clinic and has the dog x-rayed right in front of them and gets the vet to go over the x-ray with them. Normally I don't like this idea because a typical vet isn't trained to know orthopedics like someone at OFA or OVC, but at the same time I can respect her opinion. I think her's is the only exception for me.