A couple of things. Firstly I wouldn't classify either as a lie since their audience didn't deserve the truth, ie it is an inappropriate question. Not that it shouldn't be asked, just that one shouldn't expect an answer. As to the relative nature of the two answers, Diana likely was being deceptive out of fear while James likely was being deceptive our of braggadocio. Thus I would be more sympathetic to Diana, though it would be an overstatement for me to describe James negatively.

I get what you are trying to accomplish, I am more practically minded, thus I commonly take the issue of consciousness the next step or two, to the practical implications of such a change. That's more me than you.

No need to invoke the Interweb, this sort of "dilemma" could have been made when agriculture was invented. Did every town dweller understand what went into the food they ate? Likely not. But that isn't the point. Tools free up time for folks to think about things other than sustenance, such as art, culture etc.

One's interest in change is inversely proportional to the level of advantage one wields.

Not necessarily altruistic, but giving or thoughtful, yes. You bring up a good point that it is very possible that helping someone to experience something you found great, may be a mediocre or worse experience for another. And where's the value in that?

The OP brings up several semi-unrelated issues. Namely, abuse of factory farmed animals is by definition not the intention of the business. Thus it is rightly condemned but it is reasonable to purchase products from the business since it is not the intent of the business owner. Separately, it is also reasonable to boycott factory farm products because small farm animals experience a better life, though one could forgo the boycott if the plight of factory raised animals was not of importance to you. Lastly while it is completely reasonable (on many fronts) to be a vegetarian, it is illogical to prohibit the culling of domesticated animals, since that is the purpose of animal domestication.

Artists can do anything, but IMO artists should either reflect life as it is, that is giving voice to an underappreciated opinion, or to display a facet of popular opinion that brings it's audience to a deeper appreciation of an opinion they already have, but didn't know they had. It is very rare that art actually changes opinions.