I don't think that is true, actually. You can use the plant for breeding any time you want, it doesn't need an award. Heck, a lot of plants that are great studs are unawardable, but contribute something awesome (color, for example) to their offspring.
I think we are nibbling from the wrong side of the apple here. Awards should be distinct from breeding. I don't think anybody would argue that you could immediately breed with a plant you just purchased (I do it all the time...). The debate seems to be whether or not you should be able to have such a plant judged by the AOS.
Awards are nice, and they make you feel good. But they aren't necessary. As a judge I would prefer that every very nice plant be evaluated, just so I know what I'm looking for. But as an orchid grower, I have plenty of plants that I know are nice, I love them, and I've never exhibited them. And I have several awards to plants that aren't all that good, and a few awards that I think are way to low... Point is, I own the plants, I grow them for myself, and it is really up to me to determine how much _I_ like them. Awards are a side-note.