Do you mean to show action opposed to skill(I'm not being condescending I really want to know)?
Yup, showing action rather than skill, most people watching a highlight reel don't know what they are looking at, and this is more true of weapon based martial arts than many unarmed arts.
Isn't that what sparring is for? When I'm sparring a black belt trying to take my head off that training is very real and they push me to feel like I'm fighting for real. Learning to deal with that helps me control my adrenaline in a street altercation. Imagine if soldiers were fired with live rounds directly at them for training purposes? It would be reckless and needless to do so. They fire blanks that sounds like live rounds or fire live rounds clearly missing them.
So this may work for you, I have no idea about what your level is, I know that some of my students got adrenaline rushes the first time they sparred in our class, but they become used to the level relatively quickly and we then up the level. I am an instructor, I don't get any sort of adrenaline dump facing my students, I have really good fighters, but I implicitly trust them too much and we have fought too often. Doing DBs pushes me beyond sparring into something that is more like an actual fight, different level and as I said before I can't simulate this at my school, my brain thinks it is safe. DBs is a compromise between being not safe and being actually deadly. To push your soldier analogy I don't spar with live blades, that would be stupid, but I accept that the risk of breaking things is a level I am willing to play at. Paratroopers jump out of airplanes as part of their training even though it is an inherently unsafe activity, it is a level of risk that the military is willing to take with their soldiers and a paratrooper must be willing to take to be certfied for that job. I don't think DBs is for everybody, but it was and is helpful to me.
Is the relatively moderate probability of getting a debilitating injury worth it though? If you do get injured you'll lose more training in the long run given you'll need a recovery period and might have life long problems
I don't understand, why go then?
Clearly the risk is worth it to me, it doesn't sound like it is to you, this isn't something that is for everyone. I haven't lost training time, out of five Gatherings and six days of fighting I have broken one finger bone, it gave me six weeks of focused training with my left hand.

I also think you have a misperceived understanding of the risk, Out of the five Gatherings I have been to I have only seen one really serious injury (split patella), the rest have been a couple of fractured ribs, a couple of shoulder injuries, at least two broken fingers/hands a Gathering, and a whole bunch of contusions and lacerations. That is probably out of 400 fights. (One of my students was the medic for two years.) If you compare that to the injury rate of say, girls cheerleading or gymnastics or mens football I suspect it pales in comparison.
One of the benefits that I haven't mentioned is that I get to fight against strangers, guys with totally different fighting styles than anything I have seen at my school and this is something that you literally can't get if you train with an insular group.
My general skill level hasn't grown that much because I am on the high end of my learning curve, what I am getting far better at is applying that skill. Lets say that in the five years that I have been going to DB Gatherings my general skill level has gotten 20% higher (I am just making up numbers here), but the important thing is that my ability to access those skills has grown by 60%. Does that make sense?
I didn't say DBs people are the only people I've seen with chips on their shoulders. Lets use your example of karate point fighting though. In point fighting you are disqualified for excessive contact or unsportsmanlike conduct. I don't think many people compete in point fighting to hurt the other person, given the rule set. However; at the gatherings it seems with the intent and techniques thrown and even the weapons used, more than a few of the participants go there with the intentions on hurting someone or proving something. This makes this situations that more volatile.
You said that they seem to have chips on their shoulders and I told you that we don't. When I am going there I am absolutely trying to stop my opponent that doesn't mean that I "have a chip on my shoulder." That implies that I have a grudge or a bad attitude. There is nothing malicious about our fight, we are both entering this to push the other guy.
Lacking the control to not exceed a certain limit and start swinging to kill is malicious. Regardless of the handshakes or hugs given after the fight, it meaningless when one of the guys was trying kill the other and destroy his knees.
I would argue that the limited number of serious injuries from the Gatherings that I have actually attended says that the control is actually quite good. And again malice implies ill will or evil intent, there is absolutely none of that. Is it malicious if you blacken a guys eye in a sparring match at your school? Not in my opinion, you both went in there knowing that was a risk.
The Filipinos, who have more experience and have Kali/Escrima in there blood and is heavily ingrained in their culture, don't train with this method. Do they train hard? Yes, but they do so with the mindset to not cause injury, opposed to having intentions to cause injury. You can watch documentaries on Kali/Escrima in the Philippines, and a lot of the schools either wear padded gear, use padded sticks or spar with control with rattan with no protection. I have no doubt when the Filipinos practitioners are in a real encountered, they retain almost everything, not wildly swinging forgetting everything they know. Essentially, they achieve the same thing but less recklessly.
Do they achieve the same thing? How do you know? Stories handed down about death matches? I have had the chance to spar with some of the students of those Filipino instructors, some are good, lots aren't, and many won't even gear up. I have talked to students from the Philippines about the value of DB type sparring and some lament that they don't do more of it. And yes, when under stress some of the Filipinos did revert to "wildly swinging." Hell, I have watched the son of a well known grandmaster basically do nothing more than ones and twos with no footwork. This is a guy who literally grew up in the system and is presumably privy to all the "secrets," he is currently set to inherit the system whenever his father passes on. Be careful about putting the "masters from the Philippines" on a pedestal.