A few things:
Competition STARTED with TMA and the "too deadly" still is and always will be part of sport combat arts ( every sport art has illegal moves that are too dangerous for competitions).
The notion of resistance training has ALWAYS been a part of TMA.
Those folk legends are just that legends, but what many don't realize is the truth behind them:
Those masters that are "too deadly" for sport were the masters of those that currently DID sport, that has "retired" to the country life.
Behind every folk tale and legend is the truth, if you look hard enough.
There is an always will be a difference between sport and "real world" fighting, to say they are the same is naive at best.
The issue is that some people forget that "sport" fighting is PART of the preparation for REAL fighting.
It is not and never has been (till now) a question of either / or.
Psalms 144:1
Praise be my Lord my Rock,
He trains my hands for war, my fingers for battle !