I don't care what your thoughts are on their cow herd.  They are doing what you said can't be done long term.  That disproves your original thesis.  I am agnostic as to whether you should do what they are doing.  The fact that they can and do sell their bulls, and for a real pretty penny for 70+ years, further disproves your assertions.  If no packers wanted to feed those cattle, no market would exist for their bulls. 

Do whatever fits the model you want to produce cattle for.  I don't want everyone to follow my production model because I have a pretty nice market that I get to sell calves in to because there aren't many cattle like mine.  Forgive me for my reluctance to take beef production advice from a guy that goes by the name "bacon."