Normally, I don't care if people use exploits while playing whatever game but when speed runners who uses exploits get some kind of recogination like being in the news for their so called achievement, I have a problem with it. They are in a way gaining an award from doing it. It's not something that you inspire others to do.

Is exploiting a bug or glitch allowable in gaming tournaments with cash prizes or any kind of rewards? Is it considered cheating? Is it something to commend them for doing?

I see that you're trying to get me to understand it from that community's perspective but my opinion is already fixed on this. I'll just rephrase "It's being outside the normal game" to "it's being done outside of the intended game by the developers".  Like I said, I won't offer any commendation for resorting to using to exploits to win. If you think differently than me on it then to each their own. 

I dont find it impressive at all, he uses a glitch to skip straight to the end of the game and another glitch to get as many levels ups as he likes, there was no skill, if you watch it he even shows alot of lack of skill getting the glitches to work.

There are genuine any% speed runs for the other souls games that dont involve game breaking glitches, those are impressive, this is just sad.