Yes, and just like in communities described in this article, AI is banned from human competition. You can use it to practice, but you can't go to the tournament with your own chess engine and say that you deserve that win, because you programmed this chess engine.

Yes, but that's because you know when deep blue is playing chess. The recent accusations that are rocking the chess world are that one of the champions may be cheating. If we get to a point where cheating can't be detected, that may do quite a lot of damage to the game.