Yes, allowed with any other filter (in moderation) in the advanced editing rules; and explicitly written into the basic editing rules ... "These include but are not limited to ..., and standalone image cleanup utilities such as NeatImage."
As with all other post processing, if pushed too far will alter the image beyond what was there originally -- and a DQ may result.
sounds like dangerous (read: subjective) waters when referring to rules :)
Agreed, but unfortunately the rules do not define clearly either where the line is, or when it is crossed; only that there is one. The decision if the line has been crossed or not is left to the collective subjective opinions of the SC on a case by case basis, moderated by precedence.
the words "in moderation" are a bit messy but are there so that anyone who uses neat image in a way that violates the spirit of the rules (ie. photographic integrity and other less concrete terms) may be subject to a DQ and cannot plead the oft heard "but I read the rules and X effect is allowed!"
There is a slight distinction between the rules - in Basic, you have to apply NeatImage (or similar) to the entire image, whereas in Advanced you can apply it to an area or layer or whatever.