I can understand the issues surrounding the CAM aspect of it regarding a craft competition, but less so the CAD.
When I need a drawing to make something, I still use a pen and drawing board or similar, but that's only because I've not got round to learning and CAD packages. (proviso here I normally use crafty methods mend stuff, rather than being "crafty" for the end artistic result)
Does it make the end product any more "craftwork" for using CAD? I'd suggest not.
e.g. I suspect you could download a design for a wooden clock, but make it purely by hand with a fretsaw and chisels etc, in the same way that one time it would have come from a "craft workers" paper book of published clock designs.
I would certainly draw the line in a craft competition of downloading the design and then using a laser cutter for all the parts, (unless perhaps it was clearly explained in the items description)
The might though be an argument for exactly the same laser cut design if it was intricately painted by hand afterwards, such that a substantial part of the item was indeed craft work, provided that the description makes that clear.
I see the need a very careful consideration of the how the rules a written to avoid causing offence to one camp or another.
Bill