Even if you accept the premise that so-called ethically raised meat is ethical, there's just not enough land to farm meat at the scale which people in developed countries demand it, unless it's factory farmed. Ethically farmed, free range animals require much more space than caged up factory farmed animals, and the grass they feed on requires yet more land.

That means that there's a limit on the supply, so I'm pretty sure that if someone tries to solve the whole animal rights issue by buying ethical meat, they'll only push the ethical dilemma on to someone poorer than them (the one who would be priced out, due to the increased demand). That person would then have to be the one to make the decision of whether to go vegan or to buy factory farmed meat.

Admittedly, I could be wrong about this? But I'm pretty sure that increasing land use of meat, whether by regulation or economic demand, would necessarily lead to increased prices, so I don't see how it possibly wouldn't just shift the problem on to the less wealthy.