In my eyes, horses are livestock. Yes... I have "my" horse and she is a pet, I would not want to see her sent to slaughter, but at the same time I also have a pet cow and we raise pigs. The cows and pigs are all food sources and while I love animals and always become attached to the new babies (so cute) they all have the same fate. I tend to look at horses the same way. While I don't eat horse meat (I might try it though if the opportunity ever presents itself) my horses have jobs to do. And at which point they can no longer perform at the required standard, it is time for them to move on. Economically it makes no sense to feed an animal that has no purpose here on the farm, and we are all about living economically here. I wouldn't sell my horse for slaughter personally, but if they end up there somehow, I understand.
Yes, the BYB need to be reined in, but its not the place of the government to control who breeds what horses. I agree with the posters who said supply and demand. People just need to STOP buying the fugly horses. Easy. With that said, the BYB will continue to help the horse slaughter industry but should not affect the breeders who truly breed quality animals. Chances are we are not going to see a horse from a BYB winning any huge championships so anyone looking for a true performance horse won't be visiting the BYB anyway.
Just my opinion, but we really do not need more government regulation.