Ok, now that we've gotten some good responses, what do you guys think about the kyokushin styles emphasis on padless full contact sparring, only rule being no fist-to-head strikes (kicks and knees legal)?

do pads and point sparring take away from conditioning and effective use of what you've learned?

I bring up this threat because most of my family has trained in shotokan and shorin ryu, but I'm planning on the kyokushin route (daido juku once it comes to the US). We had a conversation about the sparring and the fact the shotokan dojo they've trained it only had point sparring and very few of them have gotten really hit. Not that I'm calling it a mcdojo, its got a legit lineage and free of the other warning signs, but I don't agree with endless kata and no realistic application. So I wanted to get an idea of what others train in and their opinions.
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Am I crazy, or am I so sane that you just blew your mind?