Well, I think that most people think you're going to work at Chinese sweatshop rates. ;-)
Looking at the economics, if I design my own pedals, get the PCBs manufactured (in China, 4-6 week lead time and the quality is ... interesting, lifting pads, anyone ? ) - I then source the parts as cheaply as possible, take 3-4 hours to build, I spray my own cases, take them up to the local UV printer and pay a small fortune to get logos etc baked on.... yes, I can make a profit, as long as the buyer is reasonable.
Trouble is, they're not. They mainly (experience with synth DIY here) want something for nothing.
That's a lot of work for nothing.
Sorry for taking the thread slightly off topic. I generally find that the moral issues don't crop up if you can't find a decent market for your goods, anyway. I was going to build an add on box for the Korg MS20 Mini reissue synth. Korg originally made some expander boxes in the 70's, they haven't reissued any with the new MS20. I thought yep, design a few bits, box up, there's a market. Then I bounced it off new Korg owners and they basically wanted to pay less for a hand made box than the actual bare enclosure would cost. ;-)
A volume manufacturer can always undercut you.
By the same token, here's a moral argument as well: how can so many pedal manufacturers justify such huge markups

?