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I don't think anyone's suggesting doing without animals - just that the industrial farming of animals is totally unsustainable. Animal farming used to be done by grazing on marginal land or, as you point out, by using marginal products as feed, as opposed to using prime land to intensively produce cattle feed.

When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done. — John M. Keynes
by Migeru (migeru at eurotrib dot com) on Wed Apr 16th, 2008 at 06:19:40 PM EST
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One of the big agricultural progresses of the modern era (from the 16th century onwards) was actually introducing grass into the crop rotation, instead of letting the prime land fallow (see this wikipedia page...

Un roi sans divertissement est un homme plein de misères
by linca (antonin POINT lucas AROBASE gmail.com) on Wed Apr 16th, 2008 at 08:19:25 PM EST
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