I think most people use this as inspiration rather than a competition (IE in the spirit it is intended I think).
WRT HDR's I think it's touch and go. You can make a very believable HDR, yet you can make a very "Non believable one" (Like I did on my first attempt).
I don't think HDR's are a problem, I think their comment about photoshop refers to collages, blending, pasting, and manipulating an image.
All HDR is, is representing a large tonal range that was originally captured by the camera. You're not technically adding anything that wasn't there are you?