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It just isn't. You're allowed to make products that compete with products already on the market, even if you've worked for the company making that product. Unless there's specific IP that was stolen, I don't see how this is in any way unethical or shady. They hired you to develop that product, and you did. Nowhere in that contract is anything saying you can never use what you learned elsewhere. They'd need to pay you significantly more than what they paid you (which they won't). And there are great reasons why non-competes are basically invalid in most places.

> Unless there's specific IP that was stolen,

To wit, stealing trade secrets is recognized as an actual crime, and got someone 8 years of jail for trying to sell the formula for Coca-cola to Pepsi.

Strange logic. Would you consider it unethical for former Google employees to start their own search engine? Or to quit and go work for Bing? Assuming they aren't stealing code this happens in every industry. Can former Ford employees not work for Chevy? I don't see the difference.

What IP did they steal. Please be specific.