My ex thought the only way to get llama wool was to kill the llama. For some reason, this logic only applied to llamas, she understood sheep wool didn't require the same sort of blood sacrifice.
One of the cutest things I've ever seen was at a county fair. A woman was combing this enormously fluffy angora rabbit, and spinning the fluff directly into yarn. I have never seen another bunny reach such cat-worthy levels of smug satisfaction in my life.
They used to do that at our county fair too! Only it was three old ladies who looked very much like they might have just been visiting our realm from a story book about witches. One was combing the rabbit, the next was carding the fluff and the third was spinning on, I'm pretty sure, Sleeping Beauty's actual spinning wheel. There were a bunch of rabbits just lazing about at their feet, waiting for their turn. It was my favorite part of the fair.
Kind of related? I used to work at an elder care facility that had "therapy goats." Lil baby goats that needed bottle feeding. We'd bring them to the residents' rooms for cuddles and they would get to take turns feeding them. They were so delighted by them, it was damn cute.
Yeah, uh, in mass production they're treated like garbage, cut up during shearing, abused, crammed into tiny shitty conditions. They're not inherently killed to produce wool but they do often die in relation to being treated as raw material for production.