That's how it's always been. We've extened our in-groups from family to tribe to city state to nation / religious group to (for some) all of humanity. But we still put billions of intelligent, feeling animals through a lifetime of pain so we can eat them. Perhaps in a few centuries the umbrella of inclusion will be broad enough to protect all mammals.

The arrow of history flies toward larger and larger in-groups but humans have always been horrible to those they label as "other".