Breeding him would only make it worse, as others have mentioned. Not to mention, breeding a dog not something that should be done in an attempt to 'fix' a problem, which again, wouldn't only do the opposite anyway. It's something that should only be done after loads of research and mentoring.
I think that you are making the wisest decision. A combo of neutering and discouraging his behavior will be your best bet to fixing the problem. Not to mention that there are other health benefits to neutering as well.
