Some of the newsletter was correct, but actually reputable breeders sell most of their dogs on limited registration not just the "teacup". In my opinion, that one of the qualities of a reputable breeder. Also, this statement isn't true at all:
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The Yorkshire Terrier Club of America, as well as most Kennel Clubs will not register a Teacup Yorkie because of the health conditions and genetic factors that contribute to the development of the breed.
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The YTCA doesn't register dog PERIOD, and the AKC will register a dog as long it's parents were registered, it doesn't care whether or not the dog is smaller than normal, or if it meets standard.