I'm of two minds on this, Michael, and it's largely a matter of nuance.
If someone knows excellent technique, but they have a bunch of people who want them to teach NOT to that level for some reason, I don't see an ethical issue (since it's what the people want). The problem comes with figuring a way to make sure that's what they want - communicating that you're delivering something that has a purpose other than optimal fight training, for instance.
I'd rather have fewer students and get to teach exactly what I want to teach, but I don't have a problem with someone who serves those folks who don't want the longer, likely-less-fun path.