Well, yes it does mean no prompts will be ... borrowed from the other fest, as the above are conclusive, but, no, it doesn't mean no Death Eater fics. Off the top of my head, I can see four prompts that could involve Death Eaters or a Death Eater-based plot.
This really isn't as restrictive as you seem to think. Check out last year's entries and you will see what I mean.