I own what you would call a "tiny" and I love her to death -- she's the cutest and sweetes little thing ever and looks nothing like a RAT!

My Katie Lyn weighs 2.6 lbs even. I did not pay a ridiculous amount for her either. I paid $1,200 for her and $1,000 for my 6 lb Maltese, Codie. Katie's breeder was not intentionally breeding for tinies, she just happened to have 1 tiny in her litter. Also, Katie (surprisingly) is MUCH more healthy then Codie. I've had more health problems with Codie since I have had him. Codie gets frequent ear infections (I have to keep a supply of ear drop medication in my house at all times). Also, Codie had a luxaed patella (his left rear leg) which required immediate surgery. In addition, Codie has had trouble with hypoglycemia -- I was so SHOCKED because he isn't tiny! He's a cutie pie at 6 lbs and my 2.6 little girl has never had trouble with hypoglycemia.
I personally think it is wrong to breed any dog under 5 lbs period. 5 lbs is already a SMALL dog ... why should someone intentionally breed for anything smaller?