Let me start off by saying that I have absolutely NOTHING against knitting looms. My DD11 uses them, and I have even used them. I handknit faster though so I don't find them beneficial as far as being quicker.
This is an observation of what I've seen on selling sites....ie, eBay and Etsy. As a knitter what I find questionable is someone who claims things as being handknit when it isn't. I know what a loomed item looks like, and it irks me when someone looms an item and puts in on one of the selling sites and labels it as handknit.
It's quite a bit of work and skill to take a pair (or two) of knitting needles and work something up. When someone uses something other than those needles and still claims it as handknit...well, it cheapens handknitting and what others and myself work so hard to create. And the fact that they aren't being up-front about it makes it obvious that they know the difference.
When you create something with your hands you are clearly crafting and creating...no matter the medium and tools you use. I completely support that. What I just can't stand to see is someone not being forthright, and therefore decreasing the value and authenticity of a craft.
Just be honest.