Well if thats your idea of beating the living whatsit out of someone I don't think you've actually seen many fights, you probably don't mean to but you are coming over as sounding patronising and superior.
In this day and age, yes people are still training as training has always been done,traditionally. It's the way of the warrior. Warriors fight.
The fighting done in the UFC is a sport please don't compare it to street fighting, it takes skill to fight in MMA. Any idiot can brawl in the street and does.
In the Parachute Regiment here part of their training is milling, it's recruit fighting recruit under the eye of the instructors. It may be seen as barbaric
in this day and age but it teaches valuable lessons. This was taken a while back and some of these young men were killed in Afghanistan recently.
http://uk.youtube.com/watch?v=ZgoP37DVNSs
Incidentally the instructor reffing this is one of our pro MMA fighters and instructors.
As Blindside says you have to think what is being learned by sparring in this grading.