Any chin can be a pet, no matter if it won GSC or was put under the table. I have had people ask me if such and such chin I had listed for sale could go to a pet home, and I was taken aback. Of course they can. When I list a chin as "pet only," I intend for that chin to go to a home where it will not be bred. Chins not listed as "pet only" have the potential to be bred, but don't have to be.
I don't expect every kit I produce to take top awards, but any pair that doesn't produce any kit worth showing gets re-paired or culled completely. It's not responsible breeding to keep a pair together if they're not producing SOMETHING better than themselves and competitive with current standards. Again, not every kit has to be better (and these are the ones that get labeled "pet only"), but some ought to be.
People who excuse themselves from showing by saying they breed for pets and therefore don't care about fur quality, clarity, size or anything other than health are, IMO, lazy and don't take the betterment of all chinchillas to heart.