I do think that is a very good (and important) point from two angles:
- people often put more effort into competition than they will into life saving skills; and,
- people often don't realize just how subpar they are until they show up at a match and see other average bozos who can shoot circles around them.
So from a motivational standpoint, I can see competition being valuable for someone still in the shallow end of the kiddie pool. But that's assuming it does, in fact, motivate rather than humiliate.
From an efficiency of learning standpoint, though, I stick by my original comment that if you haven't built up a solid grasp of the fundamentals, shooting competition is just going to (a) reinforce bad habits and (b) use up precious resources.