Veering away from potential confrontations...
This is all very esoteric.
The fundamental question seems two sided:
1) does the individual FREDer feel they are creating art; if they do, then it is.
2) does the viewer/gamer feel they are experiencing an art work/form?
If yes, then it is so.
I am developing a game mission with Lepanto and Rodo. I have nearly completed a Prelude mission, which uses several Cutscenes to setup the mission.
To me, I am telling a story. This story gets handed over to two other people who will develop it as a light-hearted contest between them.
For me, my prelude mission qualifies as art, and my fredding as the art form. But to Lepanto & Rodo it could be anything - a game, technical exercise, tactics & weapons test, story telling event, anything.
It seems that Art can to be anything we want, and it's production similarly subject to our personal perception.
I consider fredding an art form, as it's process is inherently creative ( I am CREATING a mission and it's world). Weather anyone actually plays it is immaterial - the ACT of creation is paramount.
Bh