Just because some people encourage breeding as a money making business does NOT make it ethical. A good breeder will not make any money, and will breed for the love of their breed.
Sadly, puppymillers are still viewed as the "great American farmer" in the eyes of the government. Puppymill states bring in tax dollars for the government, which is why it's so hard to get them shut down. I remember reading about a law that was trying to get passed through that would no longer allow people to protest against puppymills and pet stores... it would be considered an act of terrorism. I'm not sure what happened with that, though.
And how does housing have nothing to do with ethics? Those cages are TINY, are outside in the elements, and have wired bottoms. I'd consider an environment like that to be very unethical.