I saw this article last night. It IS kind of creepy, and even in the photo it seems like there is something not quite right about that kitten. I had that feeling with Dolly the sheep too. I'm not sure if it's just a reflection of my feelings, or if it's more fundamental than that.
Now I'm not hugely conservative about many aspects of religion, but it occurs to me that this is back to original sin. The sin in the Garden (so the theologians tell me) is not merely that A & E disobeyed God, but that they ate the fruit because they were told it would make them like God. But humans are not God or even gods, even if we are "made in the image of" God. We don't have the knowledge and abilities. We can manipulate bodies but not souls. That is why, when someone is clinically dead but the docs revive them, we say "revived" or "resuscitated" NOT "resurrected". And what I feel with these cloned animals is that they have no soul. We got the mechanics in place, the body functions for a period of time, but we can't supply the battery, the life force, that gives the animal the desire to live.
I'm interested in seeing if the kitten develops a personality. I think sheep are already so bland that nobody would notice much about Dolly's personality, but most of us who own cats find them to be such characters. If the kitten has no soul (I'm not sure if animals have souls, but I can't think of a better word), then it might lack some of the traits that are appealing. Perhaps it will not be curious, or inventive, or affectionate, characteristics we enjoy in our feline companions but which you wouldn't expect to find in a sheep.
I think it's hubris (extreme undeserved pride) and it contains within it the seeds of our own destruction.