Malador - Can All Dogs Be Cross-Bred?

I am a dog person.  That's not to say I hate cats, more that I prefer dogs and am not likely to ever have a pet cat.  Anyway, I spotted this puppy at a pet store:

A Labrador x Malamute.  

It's somewhat contradictory situation.  Too much in-breeding for purebred dogs will lead to genetic problems.  But then, can all dogs be cross-bred?  Theoretically, yes and I guess crossing a Malamute and a Labrador is better than say crossing either one with a Chihuahua.  However, I can't help feel I'm looking at a mutant puppy - the Malamute body and grey colouring with golden floppy Labrador ears.

I'm far from an expert in dog breeding but as much as I *furrow my brow* at the deliberate in-breeding of dogs for show pony purposes, I equally *furrow my brow* at backyard breeders of which I think this dog is a product.  Hmmmm...