Fun, we're talking about the morality of what the team is doing now?
First and foremost, the Sabres are a business entity. They field a sports team. Their main source of revenue come from 2 sources: Television contracts/advertising revenue as well as Fans in the form of tickets/merchandise.
Usually, most businesses answer to a few places if they have bad behavior. First and foremost would be the sources of their income. In the Sabres case, that means their advertisers/TV contract partners and Fans. Second would be any regulating body (In the sabres case NHL and to lesser extent, the NHLPA). Finally they do answer to their employees. In the sabres case, thats front office people and players.
Now, if I were a business and I decided to just start ripping off customers, sell them one thing and deliver another. I'd be out of business quick, right? Consumer protection would step in, Customers would stop leaving, employees would leave.
Now, what have the Sabres done "wrong" here? Are they lying to customers? Are they breaking NHL by laws? Are they mistreating to their employees? I think the stock answers is that "they are intentionally trying to lose", which isn't remotely true. Are the players throwing the puck in their own net? Is the GM calling the coach and telling him to throw games? Is there any incentive to any of the on ice players or coaches NOT to win? The answer to all those is no.
So, since the team on the ice is trying to win, the next step up is that "Are the Sabres fielding a competitive team?" My answer would be no. The Sabres answer would be no. However, this really isn't an issue. And there is 0 problems with that. Take an expansion team for example. No one will blame them for having a bad team. Nobody bats and eye when an expansion team is bad. They started with nothing, right? They have limited ways to acquire new players. And, come to trade deadline, if they have pending UFAs, they are going to trade them, right?
A rebuilding team is very similar to an expansion team. At some point, there is a decision in the ownership and management that the existing "core" of players isn't good enough. Look at the Sabres since Pegula took over:
2010-2011: Sabres made the playoffs as an 8 seed.
Offseason: Sabres went on a spending spree. Regehr, Leino, and Ehrhoff were brought in.
2011-2012: Sabres missed the playoffs by a few points. Gaustad is traded as he is a pending UFA. Kassian is traded for Hodgson
Offseason: Sabres trade Roy for Ott, Sabres agressively pursue free agents Doan (offering him 4 years, 30 million), Suter and Parise (offering both long term deals over 100+ million). They are rebuffed.
2012-2013: Lockout shortened season. Team starts awful. Coach is fired and replaced. Team captain in Pominville is traded as well as Regehr/Leopold. The rebuild begins.
Offseason: No major moves. Regier states that there will be a degree of 'suffering'
2013-2014: More pending UFA moves. Team is clearly the worst team in the NHL. GM and coach are both fired. Vanek, Miller, Ott, McCormick and Moulson are all moved out before the season is over.
Offseason: Team brings in several UFAs with the aim at leadership. Gionta, Moulson, McCormick, Mezaros, Strachan, and Benoit.
2014-2015: Team is still bad. No major front office moves. In probably the first major "building" trade, Buffalo acquires Evander Kane and Bogosion. They move several futures in the deal, as well as Myers and pending UFA stafford. Any remaining pending UFAs that could be moved are moved.
They attempted to augment the team via UFA and trade. Probably harder than any team in the league, offering some plain stupidly big UFA contracts. It. Didn't. Work. They attempted big trades (Spezza at the draft a few years ago). Nothing came of them. After 3 years of making the playoffs once and limited on ice success, it was determined (correctly, in my opinion) that the the team simply was fatally flawed in such a way a total rebuild was needed. No quick fixes would fix this team. They needed to start over. Coaches and GMs were fired. The players were literally all traded for futures. The focus is to build via the draft and augment that core via trade and UFA, rather than trying to build a core via trade and UFA.
It's really simple. The reason the team isn't competitive is the fact that the Sabres are rebuilding. Why was Neuvirth traded? To finish last? No. Because they were last with him, he was a pending UFA, and Murray got offered assets for him. Same with Stewart and same with Mitchell. My guess is that the team wasn't going to qualify Flynn, and he was a pending UFA in their mind as well...so they got an asset for him. There's no moral quandary here. No vast conspiracy to finish at the bottom. Just a rebuilding team that is not very good in their current state.
The Sabres punishment for their non competitive team is clearly in the wallet. They are selling less merchandise, unable to charge as much for tickets, and overall taking a hit financially with their fans and advertisers. However, this is a sacrifice that the front office is willing to make for, in their estimation, rebuilding a team the "right" way. Time will be their judge on whether or not this worked, but for now, they are sticking to their rebuilding plan.