LMAO at the black and white argument...very good point!
When I 'started' getting into photography a few years ago with my P&S, I used to be one of those that decried photoshoppery, and I preferred to show a scene as it was.
Now I'm completely the opposite. While I'm not necessarily a fan of the cliched photoshop stuff (like something thats been done with the standard ps filters with no tweaking etc), I don't denounce it.
As for proper manipulation (IE tonal adjustments, doging and burning, cloning etc), I agree, it's perfectly fine, and I expect most shots now to have it done.
If I produce a pleasing photo, without doing any photoshopping at all, then I will say so, because that pleases me. But how often can we do that? We have sensor dust to contend with, limited tonal range sometimes, and some other limitations. But on the other hand, we have all these new tools to play with and enhance our photos?
Why shouldnt we? It's natural progression? Was there the same uproar when somebody used 'flash' back in the day? We shouldnt be ashamed to say we've manipulated a photo.
I think it boils down to whether you see yourself as someone who captures a scene and represents it exactly as it was, or you are an artist who wants to convey a thought, emotion, or a feeling, with a finished work of art.