I'm personally of the opinion that the market has never been as big as we hopefully assume it to be. While I'm sure the state of the economy is having some impact, I think the primary driver is the fact that the supply is already vastly outpacing the demand except in the arena of multiple-morph designer animals (which is what those who make their living on these animals concentrate on).
Really what we need isn't a limit on breeding, but a path of certification resembling the AKC. Let everyday Joe breed all he likes - but make him show his animals and prove their superb genetic content if he wants to deal in high priced quality specimens.