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So, the dimension it's better on is pretty straightforward: Animals aren't killed for it.
Who products like this are for, though, is more interesting than most people think. Like you say, most vegetarians don't eat this stuff regularly.
In my experience, these primarily serve two groups:
  1. new vegetarians, who are struggling to figure out what they can eat
  2. normal people hosting vegetarians, who have no idea what to cook