Remixing photographic reality

Over at The Big Picture?, Dennis Dunleavy recounts the brouhaha brewing over a photo shot during the 2004 Howard Dean presidential campaign mysteriously showing up as the background for an advertisement promoting campaign gear for a New Jersey Republican candidate for governor.

You'll notice that not only was Howard Dean excised and gubernatiorial candidate Bret Schundler's image sloppily inserted, but the woman wearing the Howard Dean hat is now wearing a hat supporting Schundler.

Given that the individuals are clearly visible -- what, Schundler can't attract a dozen supporters to his rallies? -- and the manipulaton was done to solicit support for a different candidate, this seems not only unethical but illegal. No?