Drawing with pictures as reference

Ok, so my boyfriend and I had a discussion today: When is a drawing a drawing, and when is it tracing. In his opinion, making a drawing with a picture as reference is not art, because the picture is art, therefore you are just copying someone elses art.
Though, to some extend, I agree - it is sort of "cheating" not to think of your own concept - and I'm not saying that I agree, just look at my gallery, you'll see which point of view I have! - I do think there is some truth to the point - if you are always only drawing exactly what you see in an image, the art-part of the drawing is how you decide to draw the lines and shadows that you see. Maybe then it's more a handcraft than art? But where would the line be, then?
For example, I've made drawings where I used a picture as reference for some part - maybe placing the arms and legs correctly and make sure they're not out of proportion - but then I've changed their facial expression, the clothes, the background. Is it then "tracing" (or handcrafting) or art?

Oh well. I think in a way, it is all art to me. They're just different degrees of impressive. Or different kinds?
I'm very impressed with many artists here, who are using picture reference. I really think they're amazing. But I don't think I myself is good enough to rely only on my drawing skills. I feel that if my drawings should be impressive, I'd need to do something outside picture reference-drawings. So that's sort of where my artist block is stemming from. I want to come up with something unique, make it without looking at a photo. But my brain is empty of ideas.

Still, I'm sure it will come. I have other hobbies, too, and even if I take long breaks from all, I don't give up. Sometimes a break is healthy