I'm not even a breeder yet (but I have some business sense acquired outside of breeder), and I don't foresee the price of normals going up.
There will always be some small value for normals in terms of pets, while they may not have much value to breeders. Let's face it, big dollar morphs pretty typically go to other breeders and hobbyists willing to pay those big bucks. Pet keepers buy normals, pastels, and other cheap animals (some exceptions exist). But that doesn't mean the price of those normals, pastels, whatever will ever go up.
As for what is done with normals... hopefully they are treated with respect that all living animals deserve. I'd rather see them fed to another animal than just thrown in the trash (regardless whether dead or alive when it happens). I don't like the thought of it, but it's a better use than to just be trash. I feel the same way about roosters (I keep chickens, and though I don't purposefully breed them, I have let my hens hatch a couple eggs just to see what comes out)... roosters are practically worthless unless you are breeding chickens (and even then you don't need a bunch of roosters). They are pretty, but they can be noisy, can be aggressive (not always), and are generally unwelcome in most residential areas (even those where hens are allowed). So you can't keep roosters, and can't really even give them away. Better to use them for something (food) than to just throw them away. At least then their life had some purpose.
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