I guess I am a little confused by that view.
An example- there are people that recreate wars, in paintball. They have grenades, tanks, landmines and sometimes 100's of participants. There are local, state and even International competitions.
In doing this sport-would you call them real soldiers?
Just to be clear, in this analogy the sport fighters are the paintball warriors? They aren't real world fighters because their sport doesn't encompass the street reality of groin kicks, eye gouges, ambushes, multiple attackers, knives, rolling on broken glass, etc, etc?
If that's the case, then let me turn it around a bit. There are martial artists out there who purportedly train for the street, eye gouges, punches to the throat, knives, multiple attackers, the whole bit.
However ...
They don't actually gouge anyone's eyes in training. They may simulate doing so without contact or resistance.
They don't actually punch anyone in the throat. They may simulate doing so without contact or resistance.
They don't actually have partners sucker punch them when they're distracted.
They don't actually stab anyone or have anyone actually try to stab them with a real knife. They may drill with a training knife, but even then they usually don't have the partner with a knife actually try to defeat them in a skilled and determined manner.
They don't actually try defending against multiple attackers who are honestly trying to dogpile them and stomp them in the head. They may play act at fighting multiple opponents, but the attackers either take turns like movie bad guys coming in with single telegraphed attacks or else they lumber in slowly and take a dive like fragile zombies. (Pro-tip - If you have a 3 on 1 fight, the 1 is going to get stomped unless he has a huge advantage in skill and physical attributes.)
... and so on.
But wait, there's more.
Unless they train like "sport fighters", then they likely have not:
Hit another person as hard as they can and continued to hit them.
Knocked someone out.
Taken a full power shot to the head and continued to fight.
Practiced hitting someone who is trying to avoid being hit and is also hitting back.
Choked someone unconscious.
Thrown someone who is doing their best to fight back and avoid being thrown.
Escaped a bad position that a skilled person is trying their best to hold them in.
... and so on.
If "sport fighters" are just playing a game and are not real fighters, then these "street reality oriented" martial artists are even less so. If sport fighters are akin to paintball warriors, that would make "street reality oriented" martial artists more akin to Civil War re-enactors who play act a battle to a pre-ordained conclusion.*
Of course there are martial artists who have done all the "street" things in real life fights, but I don't know that "sport fighters" are any more or less likely to have been in that situation.
If you're arguing that only people who regularly engage in real world street fights are actually "fighters" and other martial artists can only be labelled as "sport fighters" or "dojo fighters", that's reasonable. It seems like the argument is usually something different.
*(I actually do recognize value in martial arts which have no combat sport component. I even appreciate the potential lessons to be learned in arts which don't have any sparring. I'm just taking your original argument to its logical conclusion.)