Aside from the ethical dilemma, I think it is a good deal. Not sure about your local area, but where I'm at kegs on craigslist usually go for $50 or more. And your only other option is to search high and low for legal kegs or pay $200 or more per pot for some purpose built pots. You can cut the top off and drill a hole easily. There are a ton of videos on youtube. You can get the fittings cheap on bargainfittings.com. Your false bottom is going to run you $100 or more. I got one from Norcal and couldn't be happier, although splurge for the handles cause I wish I would have got them now. Without spending a lot more money this is how plenty of brewers make great beer.
Up Next: Elderflower Ale, Sauvin Saison
Secondary: Cider, Pale Ale, Petite Saison
On Tap: Summer Ale, Petite Tripel, Rye Saison on Brett B, Calypso IPA, Brett Primary Wheat Ale, Sour Wheat Ale, Berliner Wiesse, Belgian Barleywine on Bourbon French Oak, Brett Triple