The issue he seems to have is with the illustrative works being judged alongside the more "traditional" photography in order to determine the outright winner. There are already sections that have differing amounts of post processing and themes. Images are judged on their merit within each.
Calling the awards "digital art and photography awards" or similar would solve the issue to some extent. For me it's no different to having an art competition that has categories for charcoal drawings, painting, collage etc, and then choosing a best in show. If a painting wins best in show, the collage people can't protest that it shouldn't win because it's not a proper collage, because everyone entered an art competition. So the issue is with the word "photography" and it's context in this competition. Currently the illustrative end of things qualifies under the banner of "photography". Those that don't like that are free to not enter because of that, or state their thoughts as Ken has.
As an aside, I do think he should have, and could have made his point without referring directly to the winner. The winner has entered in good faith, followed the rules set by others and won fair and square. I doubt that she wants to be dragged into this, she probably just wants to relish a moment of success without being told that really her work doesn't compare to a "proper photograph". No, it's not a personal attack, but it's clumsy and ill thought out in the way that Lisa has been directly referred to.