What is bad when these people who ONLY train that type of martial arts claim to be able to do and teach things they never really learn i.e self defense.
Not that there aren't tournament people around who can't defend themselves. I'm sure there are plenty who can, but being good at tournaments doesn't automatically mean that you are good at self-defense.
People can claim anything they want. It's just talk.
The reality check comes when they are put into a situation where they have to defend themselves for real. Then they learn the truth about what they can do, good or bad.
People who go around claiming to be able to do this or that have a problem with self-esteem. Besides ourselves, and possibly our instructors, nobody really cares about what we can do as martial artists, and if someone enjoys bragging about what they can do, then their attitude isn't right in the first place.