Whether or not the work itself is ethical is a fine line. It sounds like the problem many have is that people are then submitting these cards for grading without disclosing the alteration. Since they pass grading they are then sold as authentic and unaltered for large sums of money. This is where the problem lies.
Just because you can get away with something doesn't mean you should.
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Successful transactions with peter spaeth, don's cards, vwtdi, wolf441, 111gecko, Clydewally, Jim, SPMIDD, MattyC, jmb, botn, E107collector, begsu1013, and a few others.
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