You could be right aplant,I may overestimate the revenue from competition n MMA that said it still is a revenue stream for some gyms I'm sure. I think a way of measuring how good an MMA school is is how well do it's members do in competition? MMA can be expensive ( as can BJJ). As both systems are relatively young there may be only a small number of quality gyms available. I'm not sure though.
I agree that systems like boxing and Judo remain relatively unsoftened over time. I don't think a combat system gets watered down just because it is popular. Other factors come in to play, such as financial considerations and philosophical shift e.g. The "do" in karate, which seemed to discuss karate as a vehicle for self improvement rather than some pure killing art. Karate history and politics aren't my strong suit though, so this is purely speculative!
I partially agree. The DO could be the reason for its downfall not the issue with Sports Karate.
When I teach and that's maybe why I'm so different is that I teach as per my ethos "Karate for the streets not just for Trophies" SO evebn though I concider myself as Karate DO maybe I'm actually Karate Jutsu. I know my style tends to get pushed off in Traditional Karate Forums etc as they don't appreciate the finer parts of my style when its Kata and basics are modern and actually "created" to be used in street situations etc.