If that's allowed then to what extent is one allowed to participate in the business.

Why, I have no idea, I think it connects with how we've raised this generation, pumping your head with participation awards and all kinds of molly-coddling. 

Having an agent in Washington State isn’t sufficient; the law also requires that the trustee itself maintain an office with a phone where homeowners can go to resolve their foreclosure issues.The investigation is being conducted solely by the Washington Attorney General’s Office, which is also a participant in the multistate investigation by attorneys general into abuses in the mortgage servicing industry 

Then you must meet one of the material participation tests. 

And granted, some of the over the top criticism from Realtors is trying to protect their position in the food chain, and wanting to ensure a level playing field with all participants licensed.

Are you ready to buy and participate or are you simply seeking info on how things operate? 

Learn through going through the forums and participating while getting good at the biggerpockets books and maybe a few other resources that are available.

What other illegal or unethical activities are they not just recommending, but possibly even participating in?

One appraiser is willing to participate in inflating and appreciation, while perhaps the one who goes to your house is extra conservative in his numbers.

They bring me their "Walker Settlement Voucher" now called "Housing Choice Voucher" and I gladly participate.