I don't see it as bad at all and suspect most who do see it as bad do so because it's different from the current method. These minds are designed to have lives that humans would consider valuable, and that they enjoy for all its complexity. It is like making new humans in the usual method, but without the problems of abusive upbringing (the one pony with abusive upbringing wasn't a person at the time) or other bad things that can happen to a human.