Who bans line smoothing algorithms? Do you have a link?

you are failing to get the point

it's an (maybe the most) extreme example of something which is "gen AI" but not problematic and as such a naive "rule" saying "no gen AI at all" is a pretty bad competition rule design

I get your point. I don't get who you're arguing with.

You're saying banning line smoothing algorithms for ethical reasons make no sense. I totally agree!

I'm wondering if this actually happens.

Reductio ad absurdum is a form of logic which takes an argument to its logical conclusion in order to demonstrate that it is absurd if it were to be taken on its face. Whether or not anyone applies it that way in reality is irrelevant.