As many have said, those "big breeders" that pump out hundreds of horses a year are a big problem. (not the only problem, but a big part of it) But the thing is that those big breeders can afford to pay any fee that "standardizing" a stallion might be. And many of those stallions ARE breeding quality. The problem IMO is not just the quality of the stallion, but the QUANTITY of foals he has every year.
Which is the worse problem? My stallion who has 3-5 babies a year who might not be a national champion, but who's foals are sought after year after year? Or the "big name" stallion who has 50 foals a year hoping for that Kentucky Derby winner? (or breed show winner, or world halter winner, fill in the blank)