[Belle Noir]

There are things that toy dogs are more prone to, no matter the breed, no matter the lines, no matter how well bred.
Liver shunt, luxating patellas, Leggs-Calves-Perths, collapsing trachea, are all toy breed problems. There are others, and I am not saying these things can't be found in larger breeds, they're just far more common in toy dogs. Not to mention toy breeds are known to break legs just jumping off something like a bed or sofa. How many threads are there here, how many posts are there were people are advised to not let their dogs jump on and off things, to train them to ramps and steps for just this reason? Again, not to say that it doesn't happen in large breeds as well, but it's far far more common in toy breeds.
Not only that, but should a toy breed dog get sick, the smaller they are, the more easily their system can be overwhelmed by infection, for example. Their tiny bodies are overwhelmed faster than a larger dog's body would be, AND they have fewer resources to draw on, because they are so small.
These things are directly tied to being bred to be small, even if the small is 7 lbs. So I have to disagree, size DOES have a correlation in health. That is not to say that all tinies are unhealthy. If that was the impression you got, I'm sorry.
I am just saying that the smaller a dog is, the more prone that dog is to certain serious issues, and this isn't an opinion, it's a fact, just like the largest breeds also have health issues and concerns that while smaller breeds have them, they are a particular concern to giant breeds.

All things being equal, if you have two breeders doing all the same health tests and checks, and being diligent in their breeding, but one breeder bred out of standard teapots and the other only bred to standard size, in my opinion, the teapots would be slightly healthier, more study, and less fragile. Not only that, but the teapot would be more family friendly, and could do more with it's people, even if there were no children, since toy dogs tend to get more tired faster, and overheat faster than larger ones on things like walks, because of their tiny little legs.

The first yorkie I saw, after talking with my guy about getting a dog, was a silk coat teapot that had to weigh about 15 lbs. And he had prick ears. The only thing "wrong" about him other than his size, was that he was starting to "run gold" and had a inch wide band of gold growing out from both sides of his part.
So larger size doesn't have to mean floppy ears or cotton coat. That can't even be blamed on poor breeding, since even reputable breeders have floppy eared puppies and cotton coats once in a while. There is no reason that someone cannot have yorkies that are bred to the standard in every way except size.

That's just my opinion. Like I said, I don't see any problem with someone breeding out of standard size dogs, so long as they do the correct and proper health and genetic screenings for their breeding stock. It's no different than those who are breeding out of standard color dogs. If one is accepted/tolerated, why not the other IF the person is doing the correct health and genetic tests?