Terry, I think you answered your own question with this one. The more traditional Tae Kwon Do schools, generally speaking, have a broader focus than just competition, are more accessible to people at older ages or with disabilities, and produce more well-rounded martial artists.
For an example, I'll use an anecdote about a black belt I used to train with at my old school. He's a big guy, about 6'3", maybe 6'4", and has strength to match his size. He also has flexibility problems. He started training at an older age than many people, and for some odd reason having to do with his physical make-up, he just will probably never be as flexible as most people with the same amount of experience. The highest he can kick is the height of his own waist. Spinning and jumping kicks are harder for him than most people. But that didn't stop him from earning his black belt. He clearly demonstrated his ability to defend himself, and despite his own diffilculty performing some techniques, he's still capable of coaching lower belts in them. As far as our grandmaster was concerned, he met all the requirements for black belt that actually mattered.
Now, imagine the same guy in a class that focused heavily on Olympic competition. He'd get clobbered. He'd probably never be granted rank above some middle colored belt in such a class. He would be held back for not being able to compete well under restrictive rules. Doesn't that sound like a disservice?
(I realize that I am generalizing with regard to "non-traditional" schools.)