Very interesting question. Should be some interesting conversation. Morally I think it's despicable for the same reason you do, the playing God aspect. Secularly speaking it's just another way for only the rich to have the best; i.e. the $4000 cats. The average person and certainly the poor would not be able to have/afford the cloned animals, since they would be the cream of the crop. I personally wouldn't want one, nor would I want to eat cloned beef.
Human cloning? That's hard to say. I certainly don't think the government or anything they are involved in or funding is above it. Whether or not they have actually done it or not? That's something else. I just don't know.