Ethically raised meat on my homestead is about looking at the land and what it is providing, the interactions between animals and the land (e.g. using goats and pigs to clear scrub and turn it to silvopasture), raising animals in a way that lets them express their animal-ness.
I don't use abbotoirs, we have a good local mobile butcher, and I have some butchering skills too that I'm slowly growing more confident with. There are ethical farmers I know who do use abbotoirs because it's the only option now to legally sell their meat, and the way they handle the animals reduces stress, it's not as good as butchering in the paddock, but in the current system here it is their only choice.
It would be good for farmers to have more choices in what they can do for butchering when they sell their meat. Last year I didn't raise my own pigs, but bought a live pig from a farmer and asked him to drop it off at the mobile butcher's farm, and I then asked the mobile butcher to do the slaughter, so if people buy whole live animals rather than paying by the weight, more options open up.
Another aspect of ethical meat raising for me is about looking at all aspects of the animal in a permaculture way - I'm not raising an isolated flock of chickens, but chickens that help reduce goat parasites, spread manure, scratch up the ground to get seeds to grow, as well as providing meat and eggs. With goats the meat is a part of dairying, and I'm not just looking at the meat, but the hides as well. Seeing value in the parts of animals that are seen as waste by others is also important to me - the bits we don't eat are feeding the soil life, they are not seen as waste here.