I think this is more of a problem with capitalism, than a problem with breeding being fundamentally wrong, we're incentivized to breed as poorly as possible, it's a race to the bottom.
That being said, I think some animals are bred pretty carefully, definitely not dogs and cats, but certain insect breeding operations are pretty ethical just because being ethical with them is insanely easy.
Certain animals don't really roam as part of their lifestyle, most tarantulas are ambush predators, if you put a tarantula into a hole and regularly give it food, it doesn't dream of the outside world where it can roam freely, roaming freely is its worst nightmare because that's how it gets exposed to predators... tarantulas find a hole where they constantly get food and you can presume based on how they live in the wild that they've found the best hole ever.
They also show clear signs of stress when they are stressed, and they show less of those in captivity than in the wild.
It can be case by case for animals of the same type even. One of my cats is legit scared of outside and has no interest in leaving the house for any reason. The other cat is hesitantly curious so sometimes we bring him out on a lead. He never wants to wander further than a few feet though even if we prompt him to explore. They live good lives and feel safe neither really feels the need to roam far as I can tell.