Cheating - NO! It's simply using an available tool to complete a job. It is no more cheating than using a sewing machine to piece a quilt. And it is very similar to using a stylus attached to a machine and following a template to create a quilt design.
As for quilts submitted for judging at a show, if the entire quilt is computerized, I could possibly see it being judged in a separate category. However, I believe most judged quilts containing computerized designs also contain freehand quilting elements. How would you then classify the quilt? Computerized or freehand?
And here comes the hardest part..... How can you tell, if the designs were stitched out by a computer or freehand? They are both stitched by the same machine. Identifying hand versus machine stitches is much easier. They look totally different.
Just my 2 cents worth.