It seemed to me that (either by mistake or not) this question towards the GM was a bit leading. Sure if you ask if third party applications that send keystrokes to the game are legal, any GM is going to say "NO." However, the reason for that is you failed to mention the rest of the equation: it's an application that sends keystrokes to the game when you press a key on your keyboard, and makes no decisions about what spells to cast and/or when. That makes it a whole different ballgame. Either this GM simply didn't feel like backtracking after he told your friend "No," or he doesn't know what Keyclone is. I'm willing to bet the latter.