The quality of homes, not the quantity of homes, is the only standard that addresses the moral obligation to each animal whose future happiness or unhappiness is determined at the moment it changes hands. Taking animals into one's "care" that can't (or won't) be properly cared for is immoral, and that includes selling them to people who are not capable of seeing to the animal's life-long needs.

Taking in animals when one's facility itself causes disease and distress is also immoral. Causing or permitting distress is an prosecutable offence under the PCA Act. Killing the distressed as a solution to distress is plainly self-protection, not animal protection.

Killing animals in distress that you have caused, or killing animals that are in distress when you have taken them in, is staying on the right side of the law - but on the wrong side of right.

It smacks of animal control - it is certainly not animal welfare.