Indeed, I don't think they think beyond Step 1: grow a sheep. Wool is very eco-friendly, since you can process it into a usable product without any chemical processing (unless you count a soap-and-water wash as chemical processing; granted many choose to dye wool, but they dye other fibers too, and you don't NEED to dye it for it to be wearable). Much better than something like cotton or synthetic fibers in terms of what gets dumped into the environment from processing (what comes off into the wash water is either dirt/fecal material that can be put right back into the soil, or lanolin that's a wonderful moisturizing lotion). A lot of people also don't know that wool is also naturally flame-retardant, so you don't need to treat it with another chemical to give it that property.
If you have sheep, you don't need a lawnmower, so yet another eco-friendly plus. Compost what comes out the other end and you can have nice fertilizer for your garden.