But this is true with all their animals - none of them are in ideal conditions.
Not just petsmart, any animal we keep as pets.
Are turtles that used to having a 50,000 gal pond to live in, "fine" in a 55 gal tank?
Are snakes that have hundreds of square miles to roam "fine" in a 55 gal terrarium?
Are the fish and shrimp we keep that have ten's of thousands of gallons and miles of water to swim in "fine " in a 20 gal tank?
Are birds than fly 100 miles a day "fine" in a 3 foot cage and never get to really fly their whole lives?
I could go on with any pet out there.
The fact is anything we keep is in no way even close to the way their live in nature and it all can be considered "cruel".
Most of the stuff we keep are inbred and selectively bred to have pretty colors for our enjoyment. Big fancy bright colors in most freshwater fish makes you a visible snack to another fish, bird, and other predators. Dull, blending in to your surrounding colors usually do best, but we don't like that look so we find one that is a bit bright in color, inbred the heck out of it and get pretty colors that we like.
If you're going to upset over a betta, you should be upset over 99% of the other pets people keep.