Not true. There is market demand for a substitution to more expensive, less fresh vintage goods. And it only takes a quick trip to any KO related news article to see so:
From Seibertron:
To TFW2005Wonder how much they'd let it go for? I still need a sunstreaker. I dont care if i have a KO or a real one as long as the price is right.
Do you think he wants a big stamp on his box?I feel all warm and fuzzy when I see these. Because I can pick up something that looks like the real thing for a lot cheaper than a sealed original. I thought Slag was also being worked on because prototypes showed up a while back with Sludge and Slag. I hope they finish the Dinobots.
I hope if Takara/Tomy doesn't do Shockwave we can get one in a G1 box from these guys.
Now, as always, this raises the hairs on the back of necks and even induces MV75 to threaten with chilling effects, so watch out!
I don't think anyone is trying to condone KOs, but if you really think you're morally superior when you buy a large-scale, manufactured TF likeness as opposed to a KO, you're just rationalizing and deceiving yourself.