OK, so what have we learned so far?
Some people think it's flat-out deceitful and wrong no matter what.
Some people think it's wrong but mostly just pathetic.
Some people think it's OK because it will never be seen in public.
Some people think it's OK when you have no intention of selling it as a Fender.
Some people think it's OK because "real Fender experts" should be able to tell the difference even if the not-really-a-Fender is sold as a Fender.
Some people think it's OK because "Squiers ARE Fenders."
Some people think it's OK because "Fenders aren't that great anyway."
Some people think it's OK when it's MOSTLY a Fender or at least a Fender neck.
Some people think it's OK, period, because it's just a matter of personal taste.
With the possible exception of "mostly a Fender" I don't think there's one reason that's been given that is legitimate. To me, it's at best a poor way to boost your self-esteem and at worst, fraud or potential fraud. On the other hand, there are many people who don't care what I think (the vast majority of the world's population, for example) and will continue to do this to their guitars. I just hope I never buy a bass from any of you. I feel like my question's been answered and I'll probably use my "privileged position" as OP to close this thread.