I can see multiple sides to this.
1- This woman made a very respectable transformation, and is proud of herself. Unquestionably she should be! I'm sure that even the most hardcore competitors wouldn't argue this point.
2- A physique contest, where the levels of development go far and above beyond what the average person would ever want, may not be the place to show off the results of your personal accomplishment/journey, when despite the very impressive changes, you are still ridiculously well below the condition of even the bottom placing competitors.
I have seen instances where contests have specific divisions, or types of recognition for "transformations" or "weight loss" types of accomplishments, but even then, when such an entrant ventures into an open class, no one is surprised when they place at the bottom.
As to the show in question's promotional/online material,.. it's a tough call. You want to recognize an impressive accomplishment, BUT, you also want your contest to attract the best competitors. It's better for future shows, and it's most certainly better for those who come wanting to go up against tough competition. I can tell you from experience, as competitor and judge, that winning your class, or winning an entire show, against other athletes who weren't just not even close to you, but had no business being onstage is a crummy feeling. You want to be damn proud of yourself, and yes, the personal pride of the journey and effort etc etc is a win in itself, BUT... when you've got your contest photos, and you;'re looking at the pics of the line up... seeing guys who look like they needed to drop another 15 lbs, of could have used an easy 5 more years putting on muscle,... well, it can take something away.
[There are plenty of online figures (authors, coaches etc) who compete, but will NEVER show a photo from their stage line-ups. It's something that other competitors ALWAYS notice.]