I appreciate your comments, I was concerned but the reassurances from her breeder were only slightly making me feel better. Does this make her breeder a bad breeder, being willing to breed her at this age?? Opinions on this?!?!
Some clarifying things:
She is 7.5lbs. Her parents were champions and her breeder was planning on keeping her for show purposes but suffered a tragedy in her family and stopped showing (why she is not spayed in the first place). I was going to spay her but her breeder and I discussed breeding her when she was younger and then I kept saying I'll breed her next year, I'll breed her next year, and here we are.
And, yes, Im sure it is just my opinion that she is perfect!!

But her teeth and eyes, weight, coat (although looks slightly gray in the photo but is not), ears, posture (except not quite level back line) are all nice. I did not mean to say that she is am absolute perfect yorkie (despite my thoughts on her) what I really meant to express through that statement was that she is not just some "mutt," nor am I just some "backyard breeder" who does not care about ensuring the quality of the yorkie breed. Because I do care about the yorkie breed and wouldn't even consider, even if she was still a puppy, breeding her if she had health defects or things that would outright disqualify her from the akc stds. But, yes, I personally think she is perfect!

I would not be breeding her to produce show dogs because I know that the standard for champions is very, very high, but again, do appreciate the thoughts on her age.
But in any event, I just wanted to clarify because I did not want to read a backlash about how horrible she is, I was just again, trying to clarify what I said above because I know some people who have *giant* yorkies, or "teacup" yorkies and post about wanting to breed them for money or whatever, and that is not my goal.