A lot of decorative woods are from diseased trees, so shouldn't really be an ethical issue.
As for tonewood, I'd love to see a highly controlled blind test to see if there is any difference between woods.
So in answer to your questions:
Yes, Yes, Yes, Not at all, I like figured woods (spalted, birdseye, but not flamed, but I also like (and have, exclusively) simple finished basses.
Good luck with your venture.