Personally, I would like to see a third option: Both but separate.
I remember all the original arguments for trying to split up the two mediums, because I was one of the ones who made a lot of them (shocker!). There seemed to be, for a long period of time a tendency for the graders to always heavily favour hand drawn sketches over digital art. Some of our graders actually have a distinct and vocal objection to even calling stuff like 3d modelling art in the first place.
Even in the winning entries in the first round, the so called digital round, the more obviously computer generated art placed below the art that was done in a more traditional sense. It falls down into judging bias: not bias for units, but since art is by far one of the most subjective pursuits on the planet, inherent bias based on one’s personal beliefs and views.
I remember back in GJWX, they split up art into serious and non-serious. This GJW they separated it into Digital and Traditional… in both cases, the “good” artists of the day still won, and you end up just allowing people to double dip the competitions.
What I would like to see is a choice. In each round we run both traditional art and digital art comps, but members have to pick one or the other. It’s not much different than declaring you’re going to participate on team 1 or team 2 of the runon. This allows people who only operate in a digital medium about always being beaten by someone who can sketch by hand beautifully, and vice versa.