Breeding the way it is now seems a little broken imho. While I respect the reasoning to have a parent gain a generation, the issue that arises from that is this....
These numbers are totally made up for demonstration purposes only.
Gen 1 Lvl 30 Male - 700pts
Gen 1 Lvl 30 Female - 700pts
They mate and you get 2x Gen 2 Lvl 30 random sex. This part works great.
Now the issue comes from the parents incrementing in generation as well as the babies. You now have...
Gen 2 Lvl 30 Male - 700pts
Gen 2 Lvl 30 Female - 700pts
Gen 2 Lvl 30 baby - 1400pts
Gen 2 Lvl 30 baby - 1400pts
Now lets mate the original parents again shall we. We end up with....
Gen 3 Lvl 30 Male - 700pts
Gen 3 Lvl 30 Female - 700pts
Gen 3 Lvl 30 baby - 1400pts
Gen 3 Lvl 30 baby - 1400pts
And again for fun...
Gen 4 Lvl 30 Male - 700pts
Gen 4 Lvl 30 Female - 700pts
Gen 4 Lvl 30 baby - 1400pts
Gen 4 Lvl 30 baby - 1400pts
As you can see by this made up example, nothing is improving here over the generations. The only way to make any improvements down the line is to throw the parents in the garbage, and hopefully you ended up with a set of male and female babies. Lets assume you did, every time.
Gen 1 Lvl 30 Male - 700pts
Gen 1 Lvl 30 Female - 700pts
When mating above we get the following.
Gen 2 Lvl 30 Male - 700pts
Gen 2 Lvl 30 Female - 700pts
Gen 2 Lvl 30 baby - 1400pts
Gen 2 Lvl 30 baby - 1400pts
This time we throw the parents in the recycle bin at the bank as they are now rendered useless and we mate the babies (isnt incest illegal?)
Gen 3 Lvl 30 Male - 1400pts
Gen 3 Lvl 30 Female - 1400pts
Gen 3 Lvl 30 baby - 2100pts
Gen 3 Lvl 30 baby - 2100pts
Again we now throw out the Gen 3 parents and mate the Gen 3 babies
Gen 4 Lvl 30 Male - 2100pts
Gen 4 Lvl 30 Female - 2100pts
Gen 4 Lvl 30 baby - 2800pts
Gen 4 Lvl 30 baby - 2800pts
As you can see, the numbers are increasing as they should. However we are forced into tossing the now useless parents.
My suggestion on how it should work. The parents should NOT gain a generation upon breeding. But instead should have another flag set. Maybe called Breeding count. Once this flag reaches 4 or 5 they automatically become sterile. If there is still a concern about "puppy mills" with this in place, make the flag set to 2-3. Or even 1-2. I would rather have a Gen 1 that can only breed once and stays a Gen 1 than to have it pretend to be a Gen 2 with crappy stats.