If that's the case then I don't think SE would have an issue with it. If they're allowing it in an official contest then I'm going to assume that they're condoning it too.
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They made a public statement explicitly saying that it's ok. Also, the way Gshade works hasn't changed, so why would their policy?
Until they come out and explicitly say NO (even then what are they going to do about it?) You can use it.
GMs get things wrong all the time. A private response to someone's inquiry doesn't constitute a policy change.
What they're doing right now is performative, so obviously they aren't going to contradict the latest thing YoshiP says. They got embarrassed by the heavy mod use and worst kept secret about XIV getting so much negative public attention, so they are playing whack-a-mole while overreacting like crazy.
It's stupid and makes them look incompetent, but it's what they're doing.
The correct move is to keep your head down and don't worry about it.
Its a third party addon that effect the game or adds something that not default or by SE. So it against the ToS. That it. There is no BUT.
My first thought on addons when this dumb argument started was gshade. Like before this uproar, it was they (the devs) look the other way as long as it wasn't in the forefront that effect the game; ie raids and pvp, ect.
I really wish people would stop parroting this generic response. It adds nothing.
My monitor has software that can change game colors, add sharpening and contrast, even add an aim reticle overlay to the center. (very handy for FPS games and hipfiring weapons that have bad in-game reticles)
If memory serves, Gshade is the one addon that was explicitly stated to be allowed, since it's essentially just a photo filter