The dog's health, temperament and structural soundness must be of primary concern. Ignore these fundamentals and you will only create misery and destruction of your breed. You can't breed a perfect dog because it hasn't been invented yet. You, the breeder, must decide which defects are acceptable and which must be eliminated. There is a difference between faults and defects.
Faults are aesthetic conformational flaws.
These aberrations do not meet the breed standard, which is the guideline written by and for breeders as a goal for the improvement of the breed. Hip dysplasia is a defect, while a fault would be a dog who is too tall when compared to the breed standard. A breeder must learn to evaluate dogs honestly. The pluses and minuses of each dog must be weighed and considered. The breeder must decide which faults are tolerable, and which defects are unacceptable.