Veal which is synonymous with lamb is raised on a grazing field. The loose house is more advantageous than having a pen or a lair because of the grazing nature of the eal. Therefore it is more feasible to use loose housing because it gives the lamb room to roam.
It doesn't matter how veal is raised. It is a commodity bred and raised for human consumption. There is no dignity in life for an animal that is bred for the sole purpose of feeding humans. As such, it does not matter at all how the animal is raised or whether it has a few more feet to walk around.