Yes the profits. The breeders are funded by their customers though, I'm inclined to think that most of these people just pay for a breed as a status symbol.
My reasoning is that:
1. A free kitten makes just as good a pet as one costing thousands of dollars. (and you don't need to worry as much about it being stolen)
2. If you want certain physical features of a breed then it doesn't need to be 'pure,' read inbred. When I worked in a cattery I routinely saw moggies that where the absolute clone of very expensive breeds, but near worthless.

That doesn't seem fair to me. It is a system that values cats like property to be traded. The customers want to buy nice prestigious pets, so the breeders respond by stretching the genetic limits ever further. It's a cycle that feeds off itself and I worry where it will lead.

Do people want cats to end up like dogs. ) :