When a mommy Lotl lays her eggs she is usually exhausted for weeks after, and feeding them the egg sac or larvae or even little babies will help her rejuvenate her energy. Just like in human nature when some mothers will eat the placenta. Its full of vitamins that the mom has lost due to the birth.
I don't see any problem with it and think it's a great way to 'recycle' them.
I currently have over 200 hatchlings and I hate to see them die because they can't get enough food and the others are bullying them. I would rather feed them to mom and dad so they aren't all for waste.
I know that everyone has their own opinions and some may think its unethical or wrong, but I personally don't see a problem with it.