Yeah, no kidding. Not only are they well treated, many (most?) of them come to love the attention. Plus all of them benefit from the mental stimulation that the training involves.
There are some issues at the human level related to dog shows (i.e. Why are you so obsessed with external approval? What are you really trying to accomplish?), but at the dog level these shows are great.
Definitely Pantsuit-Doberman lady, the first contestant. Fox terrier guy would have been a strong contender but he wisely chose a dog he could keep up with.
Worst in show was Lhasa Apso guy. He made brushing and walking a sexy blonde wig look almost reasonable.