Personally, I'd like to hear more from you about what personality traits you like in a dog and what would work well with your home. From what I see, you want a dog that is more obedience minded, but you dont mind *some* challenge.
So, working on what you've said so far, I'd agree the German Pinscher might be good, and that might please hubby for looks. Do beware there is a lot of shyness in the breed, so choose wisely.
I saw Lundehunds mentioned, and I'd veto that. They are NOT at all an easily trained breed, they are very independant thinkers in a semi feral sort of way, not a stubborn way. I adore them, but I own a New Guinea Singing dog, so...
Not sure if the coat would suit you, but the Nova Scotia Duck Toller is a cool dog. BARKY though.
Brittanys are fabulous dogs, too often overlooked.
Icelandic Sheepdogs are very sheltie like, but rarer and healthier. May be too much coat for you.
I have schipperkes, and love them to pieces. They are GUARD dogs though, and should be treated as such. They are insanely intelligent, and insanely mischevious. You will love them and hate them at the same time. You will want to kill it for the first few years, but then it will be the best dog you ever had. They are amazing little performance dogs, incredible presicion. I will still cry if I think about my first one too long, and it's been 4 yrs since I lost him. Tearing up now...
A sheltie or Bc might suit, but as a demo dog for your training, I'd go with something that isnt universally seen as an "easy" obed breed. I'm a trainer too, and I'm just less impressed when a trainer has nothing but a golden and a sheltie and a GSD as their demo dogs. Sorry, but those are easy beans, let me see you work a breed that is a little more challenging.
Hm, what does your husband find to be unattractive about the cattle dogs out of curiousity? They come in such a range (working dogs tend to be lankier and sleeker in some states, show dogs more stocky and wombat like in some states, heavily marked in some, very white patched and more dalmationy in pattern in others), that if it is one small detail, there might be a body type he does like. I would not recommend them if you have kids, or if you guys wouldn't be willing to share all dog duties though...they bond very strongly to just one person when allowed. They do have probably the easiest coat of any non-naked dog out there though. Only blow it 1-2 times a year too.
'Texas heelers' are a common mix, probably the most common I see in these parts. Cattle dog/aussie cross. We had such a gorgeous boy, but he picked up degenerative epilepsy from the aussie side, and we had the most painful experience with him, emerging seizures and aggression, and eventual euthanasia. So I personally will not be getting another unless that is carefully bred out.
(PS. All the breeds I mentioned previously have had notable success in agility, some in other countries, which was the main trait I took into consideration).
I have always liked the Soft Coated Wheaten Terrier----although they're not that small. Another favorite is the Havanese-----very intelligent and energetic. But both of those require grooming. Two small, intelligent breeds that don't require grooming are the Brussells Griffon or the Affenpinscher. For a large breed, I like the I bizan and Pharaoh Hounds----smooth-coated like the Dobie. There is also the weimeraner-----another beautiful, intelligent breed.
Well, I would vote for Rat terrier, but if that's out my other suggestions:
Brittany Spaniel
Cavalier King Charles Spaniel
Corgi (I think Cardigan's are adorable!)
Italian Greyhound - possibly a bit too high-strung though
Also think Basenji is a good suggestion
Kelpie
Maybe you've looked into these already, but they might suit you!
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Get a dachshund. According to my BIL, they are "real dogs" (in comparison to the pom, peke, and chihuahua pups my sister had). Course if you get a male, they bark a lot to remind themselves they are dogs. At least that's our explanation for the sudden explosive barking this one at the house does for no apparent reason.