Judges have been known to hand out awards to those who have birds with nice plumage, but the body type leaves much to be desired upon further examination. this is a subject that arises in breed clubs. Those who actually show birds are aware of this. What people categorize as "hatchery quality" versus "breeder quality" is debatable also. A bird of good stature, healthy plumage, disease resistance, and good egg production should be the standard, not just a good looking bird with attractive plumage in its prime. Longevity should matter.
I saw white Plymouth Rocks win once at a show, and they were large, cumbersome, carried MG, and had excessively long toes. When bad judges reveal themselves, it is up to the hard working and scrupulous breeders to defrock them. I'm sure there are plenty of good judges out there, but the bad ones encourage the destruction of breed standards, in addition to those who are pleased by simply winning an award.
I've seen birds develop from hatchery birds who were entered in shows and won. So in the end, the hatchery quality versus breeder quality categories don't mean squat. It is similar to people who sell "papered pups". Just because the dog has AKC papers doesn't mean you're getting something superior.
Again, some hatcheries are good custodians of their stock and others aren't. We all learn from experience, and continue to learn so long as we raise chickens. The best way to stop the production of bad stock is to give those producers no business. The only reason they last is due to ignorance, or industry standards (or lack of them) who purchase their birds. They are used by patrons of KFC, McDonald's, Foster Farms, Tyson, etc. So it would be a good idea to boycott those businesses too.