I think the problem here is multi-faceted, and there's no simple answer. There are rescue organizations that do wonderful work and save the lives of dogs who otherwise would be euthanized, or left to their fate with people who abuse them.
Unfortunately, the popularity of "rescue" has given rise to some rogue groups who may have different agendas than what is best for the dog. Or a rescue/shelter that doesn't vet its volunteers may include someone on a power trip.
Clearly, there are bad rescues just as there are bad breeders. I don't know what the answer is. As breeders, we send our puppies off to homes we believe will be their forever family. We include contracts we hope are ironclad that stipulate if the owner is not able to keep the dog, it is to be returned to us before family members, friends, or anyone else. We're not unreasonable -- if a family member wants the dog and can care for it, of course we're happy to see that resolution. We do this to avoid having the dog sold to an unsuitable home or ending up in a shelter. We want to make sure our precious puppies are always safe with people who love them, who we know are able to take care of them.
Situations like these and the one in California demonstrate that there are no guarantees for breeders, owners, legitimate rescue organizations, etc. Things go wrong. People are unpredictable. All we can do is to take every safeguard possible for our dogs, be absolutely certain that we entrust their care to people who will treat them as their own when we have to leave them, and hope we've done enough.