I’ve noticed that a lot of HN comments tend to be utilitarian, in an “ends justify the means” sort of way. This can lead to all sorts of ethical quandaries but it seems prevalent in business.
The joke was that under extreme duress, and individual (or a team) might produce a miracle.
The ethical question is: if it's a genuine miracle (say, a discovery or invention that breaks new ground or was previously thought to be impossible), can the duress be justified?
If the question is "Is the limited bullying and serfdom of 40 people (the original Pixar team size) justified by bringing joy to billions of people (more accurate than millions) for decades (and likely a lot longer)?" Then I answer yes. I think that's a small price to pay.
I think you overestimate net joy brought by Pixar. Some people watched a movie and were entertained for the duration of the movie, some were moved by it and it lead to a couple of hours worth of joy more. Some did not understand the message in the movie and just liked colorful pictures. Yes, there were a couple of movies, but not like tens or hundreds. In the end those movies would not have the success they enjoyed without powerful marketing and distribution machine. Those movies were also used as a vehicle to sell overpriced toys.
I prefer not to mythologize (very good) products of billion dollar companies too much, even if they could stand on their own.