Of course it is! You post process a picture you took with your camera. As a photographer, can you open paint/photoshop and create a picture out of nothing and submit it to this contest without it being considered cheating?
Wouldn't be surprised if in a few decades that we have to X-ray the participants in hand competitions for robotic enhancements.
I am consistently surprised by the levels of self-righteous hubris in the techbro community. People rationalising horrible behaviour and perpetuating the tragedy of the commons, just with computers.
I'm old enough for nostalgia so i regularly find myself pining for the days when the software industry was smaller and the nerds arena was not taken over by the MBA types and temporarily embarrassed millionaires.