I'm totally okay with it. Lipsynching and air guitar are common at all levels of musicianship. It would be cruel as a society, to be okay with an aging millionaire celebrity playing air-guitar in a superbowl halftime show, but not okay with struggling amateurs at the local level playing air-violin for pocket change.
Given that lipsynching and air-guitar exist, and are standard tools of professional entertainers, I think it is elitist to say, these technologies should be forbidden for local amateurs. I think music-making should be democratic, and the tools should be available to anyone who wants to make a joyful noise. (Even beginners, posers, scrubs, losers, nerds, and geeks.)
Basically, I think it's elitist to say only rich, successful people are allowed to play the Milli Vanilli game.