Quasi-Humans: People Too?

I'm no bioethicist, but my gut tells me that this plan is just as ghoulish, albeit in a different way, from simply killing the embryos and harvesting their cells. The proposal calls for cloning a human cell, then mutating it so it develops not into an embryo but into an unorganized mass of tissue, which won't be "a human" (wink, wink) and can thus be harvested. Are we really so far down the rabbit-hole that this is considered as a superior moral option?