To respond the the point you wanted to discuss - Where it does give a benefit are very rare pokemon. My method will allow players to actually breed that pokemon they spent hours hunting, but when captured had a terrible IV spread.

 

- There is a reason these rare pokémon are made this rare, and this does make it harder to get a good one indeed. But breeding will take away the extra price you will recieve for catching a rare pokémon, which eventually leads to pokémon being underpriced, whilst making it possible to get a better one for a lower price. And this is the exact reason why the economy will suffer under breeding. Because it will get easier as time goes by to get a rare competitive pokémon by using purely money, instead of grinding to find one yourself.

53689 Long story short, no breeding. Ever!