I think, in answer to the "what are Falabellas", that Falabella is a "ranch" or "farm" name kind of approach to Shetlands bred down to be the smallest possible, but many of them were bred in Argentina as opposed to UK/US. They are kind of sought after as in they were supposed to be pure Miniature or whatever, but they are basically the same type of Miniature that the US was breeding, just with different Shetland/POA or what have you foundation stock.
If you do a Google search, you can find out more information on them. Appaloosa is a very prevalent color in their background.
I would bet, though, that if you looked back a hundred years or so, you would find many common Shetland ancestors between Falabella and US Miniatures not to mention UK ones.
Liz M.