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DDMan has domesticated some, and forced many other undomesticated animals to live among us, and to work amongst us. Not just horses, cats and dogs, but fish, snakes, all types of birds, etc. (See working example below; not sure if fish could help patch a leaky faucet, but I have used a snake when the toilet is clogged - LOL).
What about the mules that drag people up and down the Grand Canyon? Or the mules that drag timber out of the forests after trees are felled? They also were not made for these tasks.
Horses were tamed and used as transport, companions, and machines of war long before horse racing. I would think that when an army or king's or chief's colors were displayed, that the horses were equally adorned. The fastest and strongest steeds for the best of the men. The horses were well fed and cared for.
It's our competitive nature that drives us, and we've dragged this beautiful animal along with us. All this being said, personally, I have nothing against horse racing. I would certainly like to see the steroids eliminated. But this, as well as with our own well-beings, we ignore health and potential damage in pursuit of money and fame.