Ideally, I agree with you, and if I wasn't a dog breeder (where everyone wants "their papers") I would not bother registering my dogs either.
I have been an "ADBA-Registered Kennel" since 1990, but honestly, I personally haven't registered any of my dogs since 2006 ... but I do fill out "single registration forms" for my customers who want them. But if I were just an active competitor, and wasn't selling dogs, then I wouldn't bother to do any of this.
This is also another reason why I feel a full database like this is valuable (not just for dog peds, but also additional photos/history tabs, which we are working on still), is how the records of these dogs can be organized and followed paperlessly.
Rather than have papers in a file, or a computer program on your hard drive (that can't store photos or do half the stuff this database can do), there will be one centralized record-keeping resource for all.
Jack