Clearly, in sport situations, these two priorities are more frequently reversed, if any priority at all is given to the transmission of the system it is only as a conduit through which individuals learn to win.
And through learning to win they also learn the techniques that will work in a fluid realistic situation. Not that kata techniques won't work, but they don't get tested to the level as in randori and shiai.
However, I am a proponent of both kata and randori training. I think you need both, one to perfect your technique and the other to apply it realistically. If you neglect either form of training I think it is detrimental. I don't get people who only advocate kata training or only competition, people like that should not be taken seriously.
In most competitive dojos like in BJJ and Judo, they do kata like drills where uke does not resist. They allow their partner to apply the techniques in order to learn them and then afterwards they do randori to test it with resistance.
I know in Judo you are required to know all of the throws, armbars, and choking techniques for your particular level when it comes time for promotion. While competition is a factor, you still have to know the syllabus. So your point is not neccessarily valid since the transmission of the system is still an integral part of the training.