Yeah, the guy who thought his dog was special because she was a "red nose" was definitely an example of a young man who was about status. The bullies do have that "tough" image, even though many of them are big babies, and the stereotypical owner of such dogs around here is a young man with baggy jeans, lots of bling, and a sports logo jacket. The dogs will tend to have their balls attached and their ears cropped down to nubbins. Some are probably used for fighting (informally, at least), but many are just urban accessories, not unlike the purse dogs you see some young women waving around.
I get that young people like to find ways of expressing themselves and fitting into their chosen group, but animals have complex needs and aren't just fashion.
There are no breed bans in our area. Really, the things are stupid, as it can be hard to define what a "pit bull" or "bully breed" even is. Actually, I'd guess the shelters in states or counties with breed bans might not have any dogs that resemble the restricted breeds in their adoption kennels, because they'd be required by law to euthanize them, not place them. I don't know how many local landlords have restrictions by breed instead of, say, weight.
It's a shame about the BC rescue in your area. I've heard the horror stories about some rescue groups like that, though the private rescues I've worked with are different. They do charge a fair amount for adoption, though it's really not much when you look at the cost of vaccines, spaying/neutering, and transportation, training (they do behavior consults on some dogs before placing them for adoption and spend time working with and training them if needed), and medical bills. They charge the most for puppies and give discounts on older dogs.
With the BC one I used to volunteer with, we screened to make sure the folks knew what they were getting into with the breed, had never surrendered a dog because of a move or someone having allergies (because they'd likely do the same thing again), didn't let them ride in the back of open pickups, and were a good match for the particular dog (sometimes a family with kids would fall in love with a dog that wasn't suitable for kids, for instance), and wouldn't be the kinds of owners who just left the dogs outside all day or wouldn't meet its needs for activity.
But we didn't refuse people as an excuse for holding onto dogs indefinitely, and we placed a ton of dogs. Now and again a fosterer would want to keep a dog (it's called foster failure), and if that happened, they'd adopt it themselves.
You'd be amazed at the people who walk into rescues, though. I volunteered for a cat rescue for a while, and one of the stipulations was that the cats be indoor only. We had people argue with us about that point (some people are quite passionate in their belief that cats should be outdoor pets), and we always directed them to the local shelter, which had plenty of outdoor cats for adoption. We had a lady once who walked in and loudly announced that she needed a new cat because her neighbor had "taken the old one out," and she was soooo pissed.