I know Mike, actually, as well as some history on those boards (because he discussed it openly a while back. Don't recall if on SRK or not). Long ago (before he was even aware of conversions) he was shocked when he came across some guy selling HSFII for much less than the going rate. He ordered 1 and was intrigued because he wasn't aware of converted games. He is thick in the oldschool SF scene, so he bought a few more for events or whatever (as all he cared about was that they worked). I think he bought 4 total. He's slowly been offloading boards over the last couple years (both original carts as well as those conversions).
Being as he bought the conversions for legitimate use and his description is not misleading about what exactly he's selling, I can't technically fault him for selling them. Now, if he had personally converted these purely for profit, I would have a huge problem with him selling them. I think his prices are straight idiotic (I'd say CPS2 conversions should be no more than $100), but that's really the only thing I can fault him for on this particular issue.
I see this as a completely different situation than people offering a conversion service where they are stealing business from Raz.
-ud