Most people would just scream no at the thought of this on SL but from an outside perspective what do you think? Is it wrong?

Touchy topic, honestly.
My opinion is, if you purchase the item for yourself, you should be able to convert it FOR YOURSELF. Releasing it to anyone who hasn't purchased it, even close friends, is not a good idea. Some people actually make a living off of their SL creations, so just taking it and giving it to everyone is stealing. Contact a creator, give credit where credit is due, and go from there.
I watched some documentary on people who are kinda lost in the SL world, and there were people who actually went to court over SL thievery. Be careful if you decide to delve into the world of converting.

Thank you for your information. I'm just curious now, how exactly did these people end up going to court over something like this?

Selling another persons products, and making real life money off of it. Here is the documentary: https://youtu.be/aUwD7u7wwcY
It's not converting what they went to court over, but I brought it up because you can tell that people are serious about protecting their content, especially on SL. There are plenty of copyright laws. My point of bringing it up was to just be careful and respect the creators.