Like many people, you assume that BJJ is all or mostly fighting from your back. This is not accurate. The reason you often see this in tournaments or rolling is that sometimes you opponent is big, strong or skilled enough to put you on your back, regardless of what you want.

BJJ training factors this in. It does not encourage people to pull guard on the street. But neither does it advocate ignoring the ground problem in favor of more standup training.

The analogy about the "real fighting" has to do with most MA students lack of training in Extreme Close Quarters with any form of resistance. In that respect, BJJ exposes people to a dynamic that blends competitive grappling with practical fighting skills. It does this in a way that is closer to real fighting than most MAs.

Remember that there are three main divisions of BJJ training:

Sport (gi and no gi)

Self Defense

Vale Tudo/ NHB

Every school that I know of addresses these. Many focus more on Sport because their students just want to improve their skills in a controlled environment. Others favor Vale Tudo because their students want that kind of challenge. Fewer focus on pure SD just because the essence of BJJ is alive and is best expressed in sparring rather than rehearsed demos.

This is not meant to start an argument but your points echo from many before who tend to over simplify BJJ.