I think you're arguing that using AI is unethical and therefore no contest would ever allow games made with AI.

But that's a claim and not a universal truth. I don't think there's anything ethically wrong with using AI to create a game (even artwork), and clearly House House didn't think there was anything wrong with using AI for debugging.

The fact that AI-use is controversial--meaning different people disagree--is what makes me think that we'll end up with a bifurcation. There will be communities that accept it and those that reject it.