Thank you ALL for your responses. I will try to summarize the questions and my answers.
1. Is he TRULLY 14" ? - Not totally positive about it. I tried my best to measure him, but it is not so easy with the wiggling puppy. I got measurements between 13" and 15" - so in the middle is 14". But the crate looks a bit too tight to me already and it was purchased for a full grown mini poodle, so he is going to be overgrown. I do not mind it - I was debating what size poodle to get and decided with the mini because I travel a lot and it is easier with a smaller dog. If not the travel, I would probably go with a standard. Ruger is the smallest dog I ever had

. He is also my first poodle. And one more thing - he has relatively large feet. Even groomer mentioned to me that his feet a bigger then a normal mini size. To me it means that he has way to grow - correct?
2. Potty training - he is still being trained, but this one is his day crate that is connected to a play pen and the door to the pen is always open. He never messed in his crate, even when he had extra room in it (keep my fingers cross). He did mess in the play pen ones, but that was my fault - I left him in it for too long unsupervised. Cleaned the floors with the vinegar and pay much closer attention to him while in the pen.
3. Why I got the crate from the breeder? Two reasons: first I was not sure what size to get and it was convenient to pick him up with the correct crates. I got two crates - one on the picture for a day time and a plastic one for the night. Second - I just felt like giving the breeder one more way to make few dollars. Crazy? - Perhaps. I just feel that she is doing such a difficult job and deserves it.
4. I am not sure if she had overgrown minis before. Ruger's parents both are champions with many champions in the line before them, so they are within the standards. Really pretty and well behaved dogs. Ruger is somehow an outsider of the line - he is bigger, he is brown from the black parents and the black and white grandparents, and he is a biter (getting under control, but really slow progress). I personally think he is a really good looking boy (parent's eyes I guess

?).
5. I am thinking to go to the 30" crate with the mat:
FRISCO Fold & Carry Double Door Collapsible Wire Dog Crate, 30 inch & FRISCO Gray Basket Weave Dog Crate Mat, 30-in - Chewy.com. Hope he can stretch in it and be comfortable. I can always go back to the smaller one if he decides to mess in the new crate

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Sorry for a such a long message.