Why is spaying or neutering your pet so important?
FOR FEMALES:
These are the most commonly mentioned benefits, by veterinarians, of  ovariohysterectomies in dogs:

-Decreased risks of mammary tumors.  (When an           ovariohysterectomy (OHE) is performed prior to the      first heat period in a female dog, the risk of mammary    cancer later in life is less than 1%.  When OHE is           performed between the first and second heat periods      the risk is about 8% of mammary cancer later in life.      Anytime after the second heat period the risk of               mammary cancer in female dogs is about 25%,                whether an OHE is performed later, or not.  This is        perhaps the strongest argument for spaying female         dogs.)

-Decreased risk of developing pyometria (This is            infection of the uterus and it occurs in roughly 8% of
female dogs sometime during their life time. In dogs      uterine infections are a greater risk than in other             species, due to the unusual way in which dogs have        estrus cycles. The long interval between cycles with a     closed cervix leads to severe infections developing          with minimal clinical signs and so the condition often   is life threatening at the time it is discovered. )


FOR MALES:
These are the most commonly mentioned benefits, by veterinarians, of  castration in dogs:

-Decreased aggression  (supported by studies).

-Decreased urine marking (supported by studies).

-Reduction in benign prostrate hypertrophy  (supported   by studies).

-Reduction in prostatic infections.

-Elimination of testicular cancer.

-Reduces the risk of perianal adenomas ( a tumor that     occurs around the rectum later in life).

From http://www.vetinfo.com/.
Myths & Facts About Spaying & Neutering

MYTH: My pet will get fat and lazy.

FACT: The truth is that most pets get fat and lazy because their owners feed them too much and don't give them enough exercise.

MYTH: It's better to have one litter first.

FACT: Medical evidence indicates just the opposite. In fact, the evidence shows that females spayed before their first heat are typically healthier. Many veterinarians now sterilize dogs and cats as young as eight weeks of age. Check with your veterinarian about the appropriate time for these procedures.

MYTH: My children should experience the miracle of birth.

FACT: Even if children are able to see a pet give birth—which is unlikely, since it usually occurs at night and in seclusion—the lesson they will really learn is that animals can be created and discarded as it suits adults. Instead, it should be explained to children that the real miracle is life and that preventing the birth of some pets can save the lives of others.

MYTH: But my pet is a purebred.

FACT: So is at least one out of every four pets brought to animal shelters around the country. There are just too many dogs and cats—mixed breed and purebred.

MYTH: I want my dog to be protective.

FACT: Spaying or neutering does not affect a dog's natural instinct to protect home and family. A dog's personality is formed more by genetics and environment than by sex hormones.

MYTH: I don't want my male dog or cat to feel like less of a male.

FACT: Pets don't have any concept of sexual identity or ego. Neutering will not change a pet's basic personality. He doesn't suffer any kind of emotional reaction or identity crisis when neutered.

MYTH: But my dog (or cat) is so special, I want a puppy (or kitten) just like her.

FACT: A dog or cat may be a great pet, but that doesn't mean her offspring will be a carbon copy. Professional animal breeders who follow generations of bloodlines can't guarantee they will get just what they want out of a particular litter. A pet owner's chances are even slimmer. In fact, an entire litter of puppies or kittens might receive all of a pet's (and her mate's) worst characteristics.

MYTH: It's too expensive to have my pet spayed or neutered.

FACT: The cost of spaying or neutering depends on the sex, size, and age of the pet, your veterinarian's fees, and a number of other variables. But whatever the actual price, spay or neuter surgery is a one-time cost—a relatively small cost when compared to all the benefits. It's a bargain compared to the cost of having a litter and ensuring the health of the mother and litter; two months of pregnancy and another two months until the litter is weaned can add up to significant veterinary bills and food costs if complications develop. Most importantly, it's a very small price to pay for the health of your pet and the prevention of the births of more unwanted pets.

MYTH: I'll find good homes for all the puppies and kittens.

FACT: You may find homes for all of your pet's litter. But each home you find means one less home for the dogs and cats in shelters who need good homes. Also, in less than one year's time, each of your pet's offspring may have his or her own litter, adding even more animals to the population. The problem of pet overpopulation is created and perpetuated one litter at a time.

From http://www.hsus.org/pets/pet_care/myths_and_facts_about_spaying_and_neutering.html.