Stylized photos are a great way to cover up for the poor photography skills common to virtually everybody who uses a camera to take pictures. They are in that sense a huge usability win, and I love them.
Many photographers would disagree with this statement, and it papers over historical differences of opinion that have existed for over a century.
Compare Group f/64 with Pictorialism, for example.
For instance, I'm a "fine art photographer" in that I take photos which I set up in a studio that are meant to have artistic merit. They happen to have no bearing on reality (but that's not a prerequisite for them being fine art.) There are many examples of "realistic" fine art photos (some of Lauren Greenfield's work for instance[1]).
Photojournalism is generally defined to be an attempt to tell a story through a photograph. Whether "reality" is reflected or not can be a component of any type of photography, I don't think it's a category unto itself.
Although welcome to having a discussion about art, where no one is right.