A lot of people do not want to go to auctions, and that is sadly how it is. . . So if someone wants a foal from her horses, I cannot see the harm - it is not breeding for profit and for the heck of it if someone or she wanted the foal from the two, and imagine most people here did not get their horses from an auction - though you might have gone through a reputable breeder. . .
I have two rescues, and I've helped re-home and rescue quite a few more. You never know what you're getting at an auction, and the health of the horses and history can make them very unsafe for average people, though as a 14 yr vegetarian and rescuer, I wish anyone with real experience would look there and that people who breed would consider rescue as a way to give back to the animals that give them so much, for beginner horse owners or even average owners, what is found at auctions can be dangerous, unhealthy, and unsound to the point the animal does not live up to expectations and end up right back in the same situation.
That little stallion is a much nicer looking little pony than 95% I've seen go through an auction, and usually, at our auctions, you never seen small ponies and minis because there is a good pet market for them.