#2 is WAY too cute... I'd go for her... but she'll probably have you wrapped around her little finger (or floppy ear)!!
I agree with Henry -- after an initial feeling of revulsion (woah! so many dogs), I thought the same thing. Someone who had that many chickens wouldn't necessarily be a "chicken mill," would they? I think what makes something a "mill" is not the number of dogs, but the quality of the dogs' lives. However, with someone who has that many litters I would just do extra due-diligence and ask about how they socialize the pups, how much people-time they get, how well the breeder knows their personalities, what the dogs' lineage is, etc. They're questions you should ask any breeder -- but especially one who's balancing different litters at the same time. A good breeder should be able to tell you why he bred the father to the mother (what traits made them a good match), where the pup falls in the dominance spectrum of the litter, etc.
Who knows, maybe breeder spends his/her workweek playing with puppies and loving every one of them! And some breeders who only have 1-2 litters a year have a very similar set-up (kennels with runs) for housing their dogs.
Another thing that makes me think it's not a puppy mill: the person was proud to display the dogs' living conditions and invites people over to come see them. And seems pretty proud about breeding bassets for so long.
ETA: Yes, chickens aren't dogs, but like chickens, dogs need a flock/pack. Given how many owners (with only one dog) leave them home alone all day, is it really worse for a dog to have the run of a yard with other fellow canines? I'm assuming he doesn't breed his females every heat, and uses the dogs for hunting, interacts with them, etc. -- but again those are questions to ask the breeder.