Ok, this will be big but my last post about this. I'm going to try to write the best I can, english is not my first language.
First, for those claiming the legal and ethical part of this, although those who said it are right, I ask the following: do you use commercial software ilegally (e.g. downloading a game you didn't pay for)? Do you listen to music ilegally (e.g. ilegally downloaded music mp3 files)? Do you see videos ilegally (e.g. ilegally downloaded videos, DVDs)? Do you read books ilegally (e.g. ilegally downloaded books in pdf files)? I have never met anyone who is 100% 'clean', and I know people from police and court, and they do it too. And yes, this is stealing, and much worse than buying a G1 KO for a toy that isn't currently produced anymore and their original companies aren't losing money from that (I'm just talking about KOs for vintage figures). Hasbro and Takara (or any other) aren't losing money from this because there are no royalties, that is why it isn't as bad as the other things I asked. Listening to music ilegally or watching videos ilegally is much worse because there are royalties, and when one does that, the people who created that music or video are losing money, they are being robbed, constantly. And for software, with no support, even if it is a great piece of software the company may reach bankrupcy. For books, if they don't sell, the authors also get a low income. Since some people raise the legal and ethical issue I think it's appropriate to question the question (?) if you know what I mean. I'm not 'clean' and like I've said, I never met one who is. But I try to do my best as long as I can afford it, and I'm a musician and know well about these problems.
Some people also seem to include the official reissues (which I also talked about previously) also as a bad thing just like the high quality KOs. And these are legal. If you want a vintage, buy a vintage. But let me have my brand new reissue as I prefer it. I'm sure we all wanted brand new G1 vintage figures, but only few can afford them. There more important things to spend money, like food. By having reissues everyone gets a better opportunity to have the figures they like. I'm talking about the official reissues in this paragraph.
Someone also said something about restoring old G1 figures. You know what? I also do that, I'm currently in the middle of restoring a G1 Motormaster a friend of mine had from his childhood and gave to me because he know I like Transformers. But while some people may find it fun and have time to do it, others don't but would like to have the figure. And I know what is meant about restoring and be proud of it, I feel it too, but it takes a lot of time which I don't have and it doesn't stay as perfect as a brand new one and not everyone has the skills or patience to do it. And I actually have very few KOs, actually only the constructicons (and Reflector on its way to me), the cheap ones, which I've disassembled, fixed all the pieces, painted them better, added correct stickers and rub signs and they ended up looking great, and like when someone restores a figures feels proud, this too is great to see after all that hard work.
As an example, I also collect Mashin Eiyuden Wataru figures, and for those who know, these figures are much more rare than Transformers, and very expensive. Fortunatly most of the first Wataru figures have been reissued by Takara, and I was able to get all the reissues. But from Wataru 2 and 3 there are no official reissues... and fortunatly there are a few figures that have KO reissues, which are easy to tell apart because they are identified and their quality is much lower, but fixable. These figures are model kits with articulation and gimmicks. The KOs have to be fixed to be correctly assembled, and it's much harder than assembling an original vintage one. But in the end it's great to have the figure after all the work put to it. And as an example, there's a figure called Ryuseimaru which a simple MIB one unassembled may cost about $300 which I could never pay for, while the KO cost me about $25. And having it makes me happy. Would I prefer the original? Of course. But can I afford it? No way... So, the KO is an oportunity to at least have it for fun. And restoring vintage figures from Wataru is hard because there's no 'reprolabels' for them and they're not very easy to disassemble once assembled, to clean, etc.
But we must understand that each person is a single case. And remember that the toys, weather for children or adults, are to be fun. That's their main purpose, not for making an investment. And each person has his own way of fun with them. I understand MISB collectors, I understand vintage collectors, I understand reissue collectors and I understand the kids that play with them. Let's all just have fun with our beloved toys, and let everyone be able to have the figures they like, weather they are vintage, reissued or KOs. If a Shockwave KO makes me happy, just let me be happy with it, I can't buy a vintage MISB and starve for months and sell my car...
I also understand the problem of sellers trying to pass KOs as originals, that's why I said there should always be differences so that we can identify them. Like in everything, we have to be careful before buying. But I do agree with that of course. But don't be so fundamentalist about it.
If someone doesn't agree, there's nothing I can do, but I end my part with this post. I've already written too much...

If I forgot something important, well... sorry.