Well digitally added backdrops have nothing to do with either.
The rules allow people to present their figures however they like - against a blank background, with scenery, or in whatever way they think gives their figures the best chance of success. The same choices are open to everyone. It's up to them how they choose to take them.
It's not an uncommon question with the LPL - is it a painting competition or what? The answer of course is it's very much more than that.
You might be the best painter in the world, but if you happen to pick shonky figures or a subject matter that most LAF voters simply don't care for; if you can't dream up and compose a decent shot and take a clear, well lit picture; if you don't bother to think about such niceties as setting, background, props, scenery and accessories; and if you can't edit your picture in such a way as to present your figures in the best possible light - then you probably won't do very well in this particular competition.
It's a very free and open format, not to everybody's taste, but that's the way we do it here. Competitions featuring strictly forensic photography of miniatures against a sterile background are available elsewhere. They may be 'fairer' in some way, but personally I don't find much joy in them.