Who exactly is it inhuman to? I think the actual answer is it made some of the uber-crunchy customers squeamish. So let me get this right … it's OK to sell meat, pork, fowl and fish (and probably lobsters) that are killed off premises but not something that's alive when it gets to the store? I think you should have to see the slaughter of all your food before you consume it. Great quote:
You know your company has too much money when…
Collateral Damage 
Oh, it definitely makes me squeamish and I’m generally considered to be crunchy. But my opposition to lobster consumption is the fact that people boil them alive. Seems like a pretty awful death to me. Though I’ve read accounts from factory farms that indicate that few slaughters are 100% humane, so I’m with you on this.
Also, I agree that anyone who consumes critters ought to see the process between live animal and dinner plate. If they can’t bear it, they shouldn’t be allowed to eat it.
(I’m a vegetarian; can you tell?)
I think the only creature who gets to make the call on the humaneness of the method of slaughter is the one being killed. I’m a fishamatarian, which means mostly veggie but also fish. I don’t eat lobster because I actually don’t like the taste, not the method of its demise.