Yes you are. You are testing to see if you can use your art.
Boxing gloves do limit the kind of strikes you can use. But there are videos on youtube of Choy Lay Fut guys using their fist-seeds with gloves on.
Not everyone who attends MA schools are fighters. But there are plenty of competitions that TCMA engage in to deserve recognition.
Why not use another bag for that?
Although it becomes a scapegoat for some people, doing the opposite, never recognizing a style for what it is, leads to not being able to learn it correctly.
I think it's difficult to say. I think the videos of so-called TMA guys losing to MMA and BJJ guys stirred up a lot of bickering.