True, its all got its limits. We need Kumite, to the Death, like Bloodsport.

The question then becomes, If you arent simulating a sd situation, then will your training and preperation be adequate?

Exactly. UFC isnt the end all be all of SD. MMA is much more than what gets shown on PPV and Spike TV. Incorporating all ranges of attack, and a variety of attacks is whats going to be important to your training. And always, resistance. Many of the things that are generally allowed in MMA are frowned upon in "Pure" styles. Like choking and opponent. Easily acceptable in a MMA gym but likely to get you thrown out of a Karate Dojo.

The problem with sparring to "MMA rules" is that pure SD techniques are omitted. Each player is trying to "win" the sparring match. If instead you look for openings and initiate non-sporting techniques (but don't finish them for safety sake), IMO it is better SD training. The training should still be continuous, just continue to spar assuming the technique did not work. By initiating attacks that are not carried out to completion in sparring, a player may "lose" the match but will gain insight on "openings" and recovering from failed actions. Of course the more fully completed nonsport techniques should be practiced in a more controlled fashion with drills.