I think things like up holding the name of the lineage/teacher often plays a part in not letting the student compete... Competing is great experience whether you win or lose, and the so call honor of the lineage and teacher only get in the way of the students possiblity of a richer experience IMO. I was always told that as long as I fight my hardest and give it 100% it doesn't matter if I win or lose.
I've won and lost Judo matches and IME confidence plays a huge role in winning... The times I won I had a clear game plan, was focused, and was confident in my technique and ability. But I have to say that the times I learnt the most were when I lost, because it showed me what I really needed to work on... that is an invaluable experience many CMA teachers rob their students of because of losing face.