Tell me about shellac

yally

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I keep buying chocolate covered healthy things because they are labelled vegetarian and contain no dairy or eggs and I'm all 'cool yum!' until I'm halfway through and I notice shellac in the ingredients.

Now, without turning this into another honey-type thread, what's the deal? Apparently it's harvested from trees after the bugs secrete so it doesn't seem any harm is done TO the bugs. Is there an issue here? What is it please?
 
"According to an article by Ramesh Singh, Department of Zoology at Udai Pratap Autonomous College in India, 300,000 lac insects are killed for every kilogram (2.2 lbs.) of lac resin produced."

From what I could gather, it's not necessary to kill the bugs for it, but the companies that harvest it do, because it's easier.