Whole thing kind of makes me sad....if the rules don't mean the same for everyone, than what's the point of having them.? I don't really care if it was cheating, or favoritism, or a simple assumption that there is no reason to have to follow the rules. It makes thing unfair, and in competition, that is the thing we all agree to abide by.
This is theoretical of course. I have no attachments to team or event myself. I think the team who chooses to ask for favoritism should be a bit ashamed. It smacks of entitlement, but I think that the EP who allows is it is more to blame, since they took the money of every one who registered, ensuring them a competition.
I don't know the exact facts of this occurence, and I do think that in context things could be different. However, I also think that sometimes it doesn't matter what you meant, if what you did was wrong. Don't get me wrong. I like to understand things, and I get that the wrong thing doesn't mean bad intentions too.