My opinion is this. If I were the breeder who sold her the limited reg dog, I would be livid!
Point blank, the dog was placed on limited registration so that it would not be bred, for whatever reason. This owner was aware of that and did not honor her end of the agreement. You can reword it and spin it any way you want, but that is what it is.
If you don't want comments and opinions, don't broadcast your personal business on a public forum. Especially one where the member but the dogs first and the feelings of the owners second.
If nothing else, this thread made me laugh to see Mardelin, a decades experienced (sorry Mary) Yorkie breeder being schooled on AKC policies by a self-proclaimed non-breeder. Classic. Sometimes things I read just leave me scratching my head...