I don't really see the issue here.

Sphene is basically an AI created to protect her people at all costs. However, machines and AI don't understand moral concepts like a living being does.

To Sphene, the sacrifice of other worlds to fuel her people is the only choice and programmed to do so.

The Endless are all but just a looping snapshot of someone who was once alive. Like Cahciua said, they aren't really "alive".

Sphene's world is long gone and the program is just holding onto memories like the person is still alive.

Also wouldn't it be questionable ethics for someone to essentially cheat death (Regulators)? Knowing you can't really die, that creates a sense of recklessness and you just do whatever you want without thinking about your limits or safety since you'll just auto rez. Not to mention the auto rez is basically just eating up the aether/soul of someone long past.

They already mentioned this isn't he story that Sphene's plan is not sustainable. And it's not, because they will always need to take from other worlds. Using a finite resources with a growing population will just cause more shortages faster.

And tbh, the fact we're supposed to feel sympathy for Sphene when she on more than 1 occasion has betrayed us and made it clear that she will do anything to get she wants. I thought that after realizing that she was clearly using Zoraal Ja's insecurities to start a war to retrieve more souls would click that maybe she's not a good person if she's so upfront with her ideals and so-called solution.

The scions and WoL are not hypocrites because what's the alternative? Sphene has already said that harvesting souls from the living are the only way to sustain the Endless. It's either allow her to destroy worlds and eventually destroy themselves or do the correct thing and allow these people to move on. The story clearly tells us that holding onto those who are passed is not good. It's not healthy mentally, because you're not accepting reality. Death happens and even if it's not accidental, is a natural part of life. As much as we want to bring back those who we love, you're just using it as a crutch and that ends up hurting you and the ones still alive that do care.