the angulation does not cause them to be dysplastic, however there is a far higher incidence of dysplasia in american showline gsd's. some say it the angulation is dangerous to their health, others say it isnt. I personally think it depends on the severity and then only in the dogs so deeply bred for the trait that it is almost permanent. and the term is "hocks", hawks are birds of prey related to eagles and falcons.
american bloodline gsd's "can" do work they were bred for, however this is far less common. even the german showlines are less inclined at herding, schutzhund, agility etc. the main reason for this is that the working bloodlines typically have higher working drive. that is to say that the working dogs are typically more inclined to want to work, and to want to work much harder.
the angulation is of great debate, often (though hopefully not here and now) very heated debate among gsd enthusiasts. those of us who prefer the more puristic, old time, original type prefer european lines (even the european show lines have far reduced angulation). others prefer the extreme angulation.
also the european bloodlines have larger bone structure and thicker, more pronounced muscle structure. typically larger heads and straighter backs.
american bloodline gsd's typically are not as extremely angulated as you usually see in photos or show stances. they are more angulated typically than working line or european showline gsd's, but the extreme angulation is in a show stance, called a stack, which you see in the show ring.
here you can see photos of Horand, the first registered german shepherd...
http://gsdca.org/GSDReviewed/hdogs/HorandGrafrath.html born in 1895.
here are german showline gsd photos...
http://www.justshepherds.com/wgshow.htm
west and east german working lines...
http://www.justshepherds.com/working.htm
various types including the Czech lines...
http://www.justshepherds.com/othergsds.htm
and north american lines...
http://www.justshepherds.com/nalines.htm
Julie...any more photos of your gsd? from the 2 you posted I cant say anything remotely bad about her except that in the top photo it looks like she might be slightly cow hocked (though that could be the angle of the camera or the fact that she appears to be in the process of turning around) and in the 2nd photo it appears that her tail hangs straight down (also could be camera angle or other trick of the photo) but appears to be of correct length. she looks very nice to me. and by the way, dont take those possible comments as rude...it looks like it is merely a photo illusion.
she looks like german working lines and german showlines to me.