In short, yes. Are they a good thing? I don't think so, and here's why. First of all, thanks to Yorgen for his comments. It's exactly the kind of dialogue that I would like to see. While I agree that, if one feels he/she must consume animal products, a small farm environment is more humane than a factory farm, I still disagree that the consumption and farming of animals is good for the animals, environment, or health.
Consider these questions: Why are human animals (let's not forget we are animals) the only ones on the earth that herd/cage other species? Why are we the only species to nurse the milk from another species?
Small farming is still, I believe, 'unnatural' in the literal sense. It creates an imbalance with nature--a fact that is proven each day with the health of humans and the earth in peril. Animal protein and fat has been linked to higher levels of virtually all the major diseases--heart disease, cancers, etc. The fact is that due to cultural factors and herding itself, we are consuming too much animal, and are paying for it. In addition, though, a study in 2005 (Chang-Claude et al.) found that compared to 'healthy meat eaters' (i.e. those who consumed low fat meat plus didn't smoke and did exercise), vegetarians still had far lower rates of both heart disease and deaths from heart disease (see "Please Don't Eat the Animals" by Jennifer Horsman & Jaime Flowers).
The fact is that if one feels they must eat meat (I can't conceive of any reason other than taste) or any animal products for that matter, then having a connection to the animal--on a farm, or even hunting--is better in my opinion. I know that I could not shoot a deer for instance, and my feeling is that were all meat eaters taken to see the conditions in slaughter houses, to watch a pig being killed, to see a how a dairy cow is treated, or to see egg chickens crammed in cages, most would stop consuming animals and animal products. Perhaps this is just a larger direction we as humans need to take--to get back to nature and to a more balanced environment (notice that a lion will not kill more than it needs at a given time...). And again, while small home farms have conditions far better than factory farms, they are still out of balance. I simply do not believe that herded/caged animals would choose that life, if given a choice. They are being exploited in the same fashion as slaves (animals--human and otherwise--producing goods without liberty, choice or remuneration).
Lastly, with regards to Yorgen's comment...As a vegan I don't feel 'better' than others, just as I don't think someone driving a Prius is better than I. However, I am able to recognize that the Prius driver is doing more for the environment in that regard (being vegan does more in total, however), and I know that when I can afford it I will switch to a fuel efficient car (I am 95% solar at my home so an electric car is my goal). In other words, I think it best to stop considering if one is better or worse than another as people. What we should be doing is looking around, reading, discussing, and trying to figure out the best course of action to counteract the damage that is being done to our bodies, the earth, and each other (Will Tuttle writes in the current VegNews: Diets high in meat and excess protein produce the stress hormone, cortisol which is associated with aggression, anxiety, schizophrenia, and panic disorder). When we see someone doing something that is beneficial, something that helps, we should be embracing that action and trying it for ourselves...