It's a very simple situation.
Technically, no rules were broken: it was not disallowed to go mipmap or disable post-processing.
Ethically, this was quite a big deal because Charles has a high-level position within the overclocking community and is expected to act as an example for all. By using tweaks that are considered by 90% of the overclocking community as illegal only because the rules within the competition don't disallow it, has left a bad taste not only with the participants in that competition, but also the people who heard about it afterwards.
As for the third remark, during the competition no one realized what was going on because everyone was focussed on their own system and the subtest scores were not visible. I bet if participants would've seen the GT2 discripancy, 5 out of 6 teams would've at least said something before the final winner announcements.
It's a field of ethics, so impossible to put a right judgement call here, I guess. Strictly speaking no faul play here ... but I can see from the thread here that some overclockers look past the rules as well.

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