I agree that $3k is crazy. You can get an awesome pure bred papered for $500 around here. I personally think the papers aren't that big of an issue. I've had labs both ways, they are always awesome dogs. My only concerns with the "breeders" is over breeding, which has become a huge issue in recent years - as I'm sure you know.

How about name him "Powder" (as in Black Powder)

Although, if it was a girl dog it might be more fitting...LOL