I am glad to hear the gunshyness test was taken seriously at this trial. In my experience, we usually end up firing a squeaky little blank more than 200 yards from the dogs, aimed away from them while they are running away from the judges and marshal. Per the rules, the hounds must be hot on game. It also says that the gunfire must be from a normal range from the hounds.
As a hunter (even with my molasses slow cold trailing slothhounds...) my dogs are usually coming towards me when a shot is fired, and they are not terribly far behind the rabbit from a distance standpoint. With some of the hounds we see in the trials these days, the hounds are really pressuring the rabbit, and are up close to it. In my opinion, if a dog is going to run that "speed" (that close to the rabbit), it better be able to handle gunfire that close to it. Otherwise, you don't have a gundog that you can hunt with.
After all, this is the United (etc) Beagle GUNdog Federation, or we are running GUNdog Brace...