As you know Sally, I used to keep a fleece flock of wethers. My overall flock was never no kill and the fleece flock was chosen very carefully from amongst those animals for fleece quality, plus some were bred specifically for fleece.. Eventually because of unforeseen circumstances I had to kill them all and put them in the freezer - they were the fattest carcases I've ever seen. I could get £20 for a good fleece, 11 years ago, but I definitely had to work hard for it.
I feel strongly that those crafters wanting to work with fleece or alpaca fibre should expect to pay a good price for a good product, and if they want something even better than I could produce, then they really would have to pay for it. I'm not convinced though that the end price you could charge could ever pay for the cost of raising the animals. The number of folk who would actually go ahead and buy such expensive fleeces regularly is infinitesimally small, so would not be worth the investment. There's the worth of the land occupied by the flock, the purchase price of the animals, the time and care they require throughout the year, feed over the winter, marketing and advertising, careful shearing, P&P, and then you need to make a profit. I think the only way you would get anything like a fair return would be to add value to the product, but of course that requires further input. Let's just say - you couldn't live on your earnings.
More and more as I grow older I resent those who expect to be able to buy just exactly what they want, for a very low price, whilst doing nothing towards its production. I'm sure I've made the point many times on TAS that I feel that the young and fit could be out growing their own vegetables instead of expecting to buy from me, at a rock bottom price, when it's a huge struggle for me to produce enough for us to eat ourselves. I'm not saying that everyone can go and rear sheep in their back garden, but I do think that they should be paying top dollar for a good product, and even topper dollar for something as unusual as is being mooted in your comments Sally.
I really don't think there are enough spinners, weavers, felters out there who will pay enough to make such a business sustainable.
I'm going round in circles here.
Then there are the questions you raise about the practicalities of keeping a truly no-kill flock. Then I see the practice of coating sheep creeping in, to raise the value of the fleece again. Then your sheep end up housed all year to preserve the quality - that's not a natural life for a sheep and something I would never condone.