I don't really have a view on the ethics of it. I don't think anyone should apply to any company that doesn't respect your time during the interview process. Other than resume / cover letter preparation (which parallels writing the job ad), I think the rest of a job application process should be reciprocal with the company putting equal time into it as the applicant. The idea of making someone do a bunch of work when a company has no skin in the game is offensive. Another one I've seen is recorded interviews where a candidate is asked to answer some questions into a webcam because the hiring org can't be bothered to actually talk to them.
