Just one more thing to consider, blue merle isn't an 'original' sheltie colour and wasn't present in the small island dogs. It was deliberatly introduced into shetland sheepdogs when crosses were done with collies, possibly with the specific intention of producing blue merle shelties as well as improving type. Presumably, producing something new and striking that appealed to the public was as appealing then as it is today!
Good point. When it comes to breeding practices, we need to remember that the Shelties we have today were created by many crosses and periods of intense line-breeding.
From Sue Ann Bowling's web site:
Collie Crosses behind Shetland Sheepdogs
