It looks like the only way to make meat less available and more expensive is to make CAFOs illegal or regulatorily impossible. But people would still seek cheaper meat, and farms would provide it — by decreasing the quality of life of their animals to cut costs.
You're right that if milk and egg production requires killing the male babies (not to mention adults whose production is starting to fall off long before the natural end of their lives), you might as well eat them if you think it's OK for your health (assuming you're already OK with this type of exploitation, especially the annual forced impregnation of dairy cows and the subsequent taking away of her calf). That's why many people are not just vegetarian, but vegan, because you can't separate, eg, dairy and veal. And people can indeed live long and healthy lives without animal protein. (Your typical meat-eater is hardly a picture of health!)
I'm glad to see people who won't give up meat trying to make their choice less cruel to the animals and less harmful to the environment. But there is a trend in recent years to assert that it is actually better in every way (morally, environmentally, nutritionally) to continue to consume animals, which only suggests that it most certainly is not.