A few points Ken:
Why would people "fix" karate when MMA is so readily available now? If people want hard training, trying to re-invent the wheel in a Karate class would be much harder work that going "Screw this, lets go do MMA".
Second point would be that maybe there are a lot of people in Karate who like the JKF way of doing things. I've seen some serious injuries in Judo tournaments and with the MMA folks I've trained with. Trainined in hard, full contact systems takes a toll on people. Training in a light-contact system might be less likely to induce injuries. Some people might prefer that.
Understood, but Karate is being wasted with the instruction its receiving at present, It's becoming akin to WTF where its nothing more than an Olympic sport which has no workable syllabus outside the competition arena.
I think MMA is just a Jujitsu/Muay Thai mix which was a fad but has started to take hold, but again I can see this having the same happening to it; when Johnny's mother gets involverd