One huge issue I have is that people aren't viewing corals as LIVING creatures. These are animals and sensitive animals at that. I have had enough of seeing people treat these animals like crap. These aren't plants (heck, I treat my plants better than some treat their corals). I would never cut one of my orchids into two pieces if there were only two pieces of it to begin with, it stresses the plant out so bad that the next new growths are stunted. So, why so we want to cut up corals that are tiny for even smaller frags? Is it the money? Is it the look of having a ton of different corals? What is it?
And I guess to actually answer your question ... I don't equate corals the same as I do other animals. Maybe if I saw blood and guts when I did this, or they yelped when cut I would think twice about it.

Also when we are talking about fragging zoanthids, especially small frags, we are typically cutting their connective tissue...not cutting the polyp itself.

Do we know for sure it is bad for zoanthids? It seems to me when they are fragged, they tend to grow at a quicker pace...often springing up several new polyps within weeks.