I personally don't mind the word "teacup", although I am aware that it's not an "official" or different type of yorkie. To me, it just refers to a tiny yorkie, one that will be smaller than what people typically think of (4-7 lbs). If someone uses that term that doesn't immediately turn me away, what matters more to me is if they'll have a good home for my baby. I check their references, read their application, and talk with them several times before one is placed, so whether or not they refer to it as a teacup, mixing bowl, measuring spoon, whatever...doesn't matter to me as long as they provide a loving forever home where the puppy will be happy and well cared for.
Now, back to the original post, it does make me sad that EVERYONE seems to be looking for the smaller ones now. I end up with several smaller puppies, but my moms are all standard size, so I don't per se breed for tinies, but have quite a few. I'm having a much more difficult time placing the babies that are going to be over 4 lbs full grown. Tinies ARE a lot more work, and as Woogie Man mentioned, they really are...TINY...a lot smaller than people think until they see them. I had a lady ask me the other day if a puppy would be alright to be left for 8 hours while they were gone to work. I told her that a standard size would be fine, but not a tiny...you just have to worry about 10Xs more things with the little ones. It used to be that nobody wanted the yorkies OVER standard 7 lbs, now they don't even want the standard size...
I have no problem toting my 6-7 lb girls around, and they're still SMALL.