You're making perfect sense! :) But I think that you'll find that within well bred litters, (I have a friend who has been breeding Yorkies for 40 years) there are some pups a little bigger, which will be used as broods or put in pet homes, and some that are a little smaller, which will be shown and used at stud - the males are usually smaller than the females to regulate the size and make for easy whelpings. So the pups will be all be around the breed standard, just at different ends of it. Does that make sense?
The breed is still relatively new, just over 100 years I think, and was a mixture of 3 different breeds, which can still emerge to a degree all these generations later if the breeder doesn't know what is behind their lines.
The donkey sized Yorkies that you see around are invariably from pet matings where people with no knowledge about what is behind their dogs and bitches are mating big (often with big behind them) to more big (often with big behind them again). These often have floppy ears, long tails and woolly coats to add to the picture! :( In the parlour pet owners often ring for an appointment for their 'miniature' or 'standatd sized' Yorkie, with no understanding that there is only one size that they should be!