The fly-tying comps with which I'm familiar require the contestants to tie specific patterns. That means creativity is either severely restricted or, as I see it, eliminated. I've seen contestants become severely nervous/stressed during a contest. I've always questioned how one could consider something enjoyable when emotions run in that direction; yet, I have to accept it as fact when I'm told these same previously stressed folks enjoy these contests.
Fly-tying contests are definitely not for me; however, I would feel it totally unacceptable for someone to attempt to quash them solely because they don't like the concept. It's the same for fly fishing comps. The glaring difference here is that flies are judged mostly subjectively while it's substantive with fly fishing.
I like to sit down at the vise and indulge in my desire to be creative. I know how I want to approach a concept and I'm constantly mulling over in my mind how I can approach things a bit differently. Tweaking is both enjoyable and challenging, for the most part. I suppose that posting a fly pattern on facebook or anywhere else could be considered an act of vanity since people provide feedback to the tyer. That means many of us are vain. Would I think that I may be capable of winning a tying contest? I really don't know - and I have absolutely zero desire to find out.
I can't say that I consider the broad spectrum we see within the realm of fly-tying as art. Some Salmon flies and some wet flies would fall within this category. There are some tyers who tie a variety of imitations that, when complete, lack only the magic of life they appear that realistic. I suppose we could include these as artwork, as well.
I'll end this post with this: one thing that bothers the daylights out of me is when someone hands me a fly and says, "I know it's not as good as yours." They have unknowingly yielded to me in some form of imaginary competition/comparison. That's not what fly-tying is all about...