Wodjeka - I believe you are 100% correct. I know many people disagree with the term deer headed chi's just like others disagree with the term teacup. It's a way to describe the dog. Perhaps a way to rationalize why the dog has such a long sloped head and long muzzle, or why its so small? (although teacup is usually a coveted term and deer headed not so much.)
If people don't care what the standard says, that's fine. Their perogative. But the standard exists as a blueprint to the breed and if everyone disregarded it, we would have massive 15 pound dogs in no time that don't look anything like a chi. (I have nothing against 15 pound chihuahuas by the way, just that they are not bred to the standard.)
People that are breeding deer headed chi's with no regard to health or temperament are the real problem. They usually have NO idea what a chi should really look like. Thus, they think their dogs are worthy of being bred. That is where I have a problem. Especially when they tout their dogs as being DEER HEADS like it is something to be proud of.
No dog fits the standard perfectly. But there are dogs that look like chi's and there are those that don't. If someone doesn't give a rip that their dog look like a chi, then go to the pound or shelter and adopt a little mix. Problem solved.
If someone wants their chi to look like a chi - they should buy from a reputable breeder who works hard to breed healthy dogs bred to the standard and who does health testing. Or rescue a chi and give a chance to a homeless dog.
Long snouted deer heads who don't fit the standard at all SHOULD NOT be bred. Plain and simple. That is the ONLY way we are going to protect our breed for the future. Are they great pets? Of course they are! They just shouldn't be reproduced.