Did you build a working prototype?
Did you find a tiny little camera that has enough resolution and a nearly 180 degree field of vision in order to reach the edges of the keyboard such as the ESC key?
How did you over come the extremely narrow angle to the glass at the bottom front edge of the keyboard, where the light entering the camera would almost certainly be 100% reflected and the internal reflection rendered invisible?
Or is it just a rendering?
It seems like the two camera solution proposed by the award winner is necessary to make the concept function.
Since you are defending what apparently your concept, please share with us the development that you did. I am curious now. We are very curious here on the forum and nothing helps to win us over like a good story of development.
How do I know the world does not need transparent, no tactile feedback keyboards? My opinion and my experience. I could be wrong, there is nothing to prevent you from bringing your product to market and proving me wrong. There are plenty of awards to win in the world. No award beats having strong sales.
In answer to your main question, should IF be ashamed to award a pirated work? Not really, it is a little piece of nice design.
Final update:3 Million dollars invested in itby a Swiss VC companies first foray into Kickstarter funding. Guess we will see if there is a market after all. One year later, still not shipping. (I wonder if 143K of the 3 Million went to refund the Kickstarter funders or if everyone is that patient.)