There's a few different types of showing, conformation, trial, agility etc. Each type has it's own set of expectations for judging.
I show Conformation. It is expected that a Conformation dog will have two descended testicles, a judge will need to check these, if they don't they are disqualified, that's part of the whole point of a Conformation dog, to be able to reproduce. The ears need to be of correct set and when touched as any other part of the dogs body, shows it's temperament, another side that comes into the whole of a good dog, not just there for looks, but soundness all over.
My dogs were of good temperament, could be touched all over, be handled by strangers, that's what makes a dog worthy of breeding. If a dog grizzles, growls or tries to bite a judge for touching it in the ring then it is not worthy of breeding from, it will lose points.
If it is an agility etc dog show it will not be tested the same as the Conformation dog. What you saw was a Conformation dog show.
To some extent you may say a handler might not exploit the ability of the inherited instinct of the dog to show, but you don't know what they do with their dog at home.
I have Labs, show them for Conformation, but I still take them swimming, doesn't mean I let them drag in nets from the fishing boats in Newfoundland, but I still let them do what they were originally bred for, swim!