What's the difference between your scenario of a house with cameras vs. a VPN service not logging things? I'll be honest here, I could list out a bunch of differences between those two scenarios (houses tend to have a reasonable expectation of privacy while internet services may not, the likelihood of catching criminals and the severity of their crimes, the potential for abuse, in the case of your house you could always serve as a witness to a crime so cameras might be overkill, etc.) but I honestly don't know which one of those differences is the reason why I find one scenario to be ethical and the other unethical, or if it's some difference I haven't thought of (or I might be wrong!).
I'll admit my opinion here isn't fully fleshed out. Another thing is that I consider Tor to be ethical, even though that's essentially a VPN that doesn't log anything (from the perspective of not being able to respond to law enforcement requests, I know there are significant technical differences). In that case, I think the distinction is that Tor is meant to help fight censorship in authoritarian countries, and the fact that it can be used for nefarious purposes is an unfortunate side effect that doesn't outweigh the benefits.
Anyway, I do think there is a line between valuing the privacy of users and shielding them from legitimate law enforcement requests, but I'm open to discussion on where exactly that line falls.