Nice to see so many different views on the subject!
I must say I'm surprised to see how many actually have a "policy" on the subject.
Another thing too - I play a lot of historical wargaming and in that miljoeu "unpainted" is almost "unknown". I wonder why there's a difference?! I've speculated that the influx of new troops we see in science fiction / fantasy games, may hold some of the answer.
Take Privateer Press for instance every other motnh or so new troops arrive and if you wanna keep up you gotta field those or at least look at them in some way.
But then again this theory can't really relate to Epic.. as not much new is coming out from GW modelwise.
And to the poster who disliked my "cardboard" comments - just because my gaming group has a set of unwritten rules, doesn't mean I want to change the world. You're entirely entitled to have your opinion.. in my opinion!!
I play in a fairly closed circle (almost) and unwritten rules are less of a problem that way and everybody's cool with it.
Outside this "closed" circle I play against unpainted a lot.. it's the standard I'd say. At a Warmachine tournement or fantasy tournement I'd expect at least 50% unpainted.
The local club recently held a necromunda campaign - lot's of unpainted minis.. but a rule saying "your gang is -1 LD if it contains unpainted lead". Again another take on it, but no biggy as everybody was cool with it.