So there isn't a single competitive Umbreon in this game, perhaps like one or two competitive Jolteons and maybe, very maybe one Espeon. Kewl story bro.
How many off those did you have before breeding?
When was breeding ever a mechanic to instantly get perfect pokemon? Heck, if breeding would've been so perfect in the games why would there ever been a need to create Pokesav?
We've played PokeMMO without 'perfect' pokemon for a long time. Now with breeding we can gain pokemon that easily live up to the standards we had before breeding with reasonable speed. I don't see what's wrong with it. If you had pokemon that were considered good before the patch you can use those to breed pokemon that are just as good at an ok rate.
I'm with Winter here. The mechanic is fine, just please reduce the steps needed to hatch since Flame Body isn't working yet.