> So you are saying that these special hybrid seeds that are the first generation of combining two strains are the only ones that can perform well

Absolutely. The first generation of a hybrid seed will produce several times more than either traditional seeds or the second generation. You can't reasonably grow your own hybrid seeds as you need to keep your fields to grow those seeds well separated from any other fields.

Now not all plants can be hybridized, and even of those that can I won't state with confidence that all of them have that property. However Maize (corn in US) which is a major world crop does act like this.

> Such laws are in place to protect the IP of these special seed producers, to make their business model viable

Not exactly. There is some of that for sure, but there is also that if you are a seed producer you want to ensure your customers get your good seed and not counterfeit that looks just like yours (if you cannot examine cell DNA you can't tell the difference between a first generation hybrid and any other seed).

However the law was written is clearly too broad. It should protect the hybrid seeds - nobody wants any seed claimed as hybrid that isn't a first generation hybrid. However it shouldn't affect any traditionally saved seeds (though where hybrid is available nobody wants them except museums)