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I'm not sure what ethical means in this case, but I rarely buy from Taobao all the good, valuable ponies came before I got into G4 collecting, now the ponies I see on the site happens to sold mass on Taobao and eBay and i've learned that whatever specific pony will be released soon
I don't see anything wrong with it I wish there was a Taobao when G1 was around because I'd love to have some G1 prototypes!
The thing I see as a downside of these sales though is when a lot of people buy new ponies loose on taobao/ebay then I see people complain that we never get new characters. It's like, well, those sales of that pony in a set could really be affected by the fact that a lot of collectors already bought it loose and therefore won't pay for it in a set. I could be part of the reason we don't seem to get many new characters now.I can't really be firmly for or against it.