God knows I don't want to get dragged into this argument again, but since no one else ever makes this point...
The reason less rules doesn't make a tournament closer to real life is because the important differences between tournament fighting and real fighting have NOTHING to do with what the fouls are.
The entire evolution of conflict is entirely different (in many ways, the exact opposite) in tournaments as in real life. This has to do with mental aspects, physicals aspects, the way range changes, the way direction is used, environmental factors, etc. In your training you can maximize your performance in regards to these aspects for tournaments, or you can do it for reality. There are some important technical differences for each case. This does not change in the 'tournament case' if you alter the fouls.
Tournament-style fighting is incredibly useful at testing and training certain aspects of your real fighting game. Like doing bench-presses if you're a shotlifter. However, it would be a grave mistake to believe by altering the weight on the barbell, or where you grip it, or how low you go, or how fast you move that you can turn the bench press into a shotput. Same deal here.