Insane...
...purely on the basis of economics. If this were possible on a industrial scale, it would mean massive farm bankruptcies, and an ever increasing firm grip held by massive international food manufacturers (cough*nestle*cough). If it was cheap enough to sell in third world countries it would destroy whatever agricultural economies they have.
Environmentally I have to believe that it would take a similar or greater amount of energy to produce this test tube meat, especially given that it may have to be transported over greater distances than "traditional" meat, having a net increase effect on global warming.
It makes far more sense to try and regulate animals minimum living conditions more carefully, as it's not only PETA bait, but just begging to have further health problems enter the meat lovers world. Something worse than CJD perhaps?
If you're a vegetarian, you probably just don't like meat, so you don't eat it. If you're not, then you do, so you do. Let's just leave it at that, eh?
PS: I hate those PETA nutters, and i've been a vegetarian almost all my life.