This is large scale Matrix-like exploitation at its finest like only humans can do. Copying the genes of a single animal hundreds of thousands of times, killing the males at birth, plugging the females to a milking machine, feed them corn and soy which is totally not their natural diet and injecting them with tons of antibiotics, hormones and god knows what else. I wonder what could possibly go wrong? All completely…
Completely necessity driven (calories, nutrients and such)... the food market could be much tinier than it is today. We'd be getting our animal proteins from insects, our fresh vegetables from a small collection of locally efficient species, etc.
Dairy is a long tradition in a lot of places, and an important (culturally, but also nutritionally in-context) food. So is beef. So are spices. Increasingly, things like almond milk and avocados, for newer cultural movements.
Sure, dairy is not necessary. Neither are avocados. People like them though.
In any case, long history and tradition of cattle. The "matrix" problem is mostly a problem of agricultural policy, corporat farming and technology.
I live in Ireland. We have a big dairy industry. Cows eat mostly grass and live mostly in fields. Antibiotics are for sick cows. The medium sized farmers are still strong and I feel fine about the ethics of dairy, at least from an animal welfare perspective.
There a newer reasons for change. It might be a good idea to plant forest, instead of grassy fields and to be concerned about atmospheric methane. That said, if we are to reforest, we might use the forest to farm pigs the old fashioned way. Pigs are factory farmed, and animal welfare is a problem.