IMHO there's too much emphasis placed on doing things the "right" way and not enough on actually getting things done. Even if I did simply trace the photo, I still would have had a learning experience, engaging pencil, hand, and paper and understanding a bit more about how they work (to me, the purpose of the assignment). Regardless of how a thing is made, if it actually gets made and gets into other people's heads and gives them an experience worth having, I think it has done its job.
I took up my dispute with the vice-principle along with my parents and redid the assignment on thick, opaque card-stock (that couldn't possibly be used to trace through) and reproduced another photo with just as much accuracy. I went on to attend art school and win illustration awards despite my horrible experiences with art in high school, but I worry that another student might have abandoned their pursuit of art and deprived the world of their creativity, given such negative feedback. I feel we all need to lighten up a bit.