Personally, I don't believe that any martial art will prepare you for a fight. Certainly training helps you to gain more knowledge that a regular person about a particular martial art. However, in any fight if fear takes over , all your training it's gone out the window, you will forget all your teachings. Thus, "IMHO (Lynn's word)" not being mentally prepare for a fight will make you lose.
Disagree, there are many aspects of martial arts that will prepare you for a fight.
Mary provided a very well thought out and articulated answer which I agree with.
You are correct that fear is experienced. The negative effects can be minimized through proper training.
Won't go into proper training, as this is not the purpose of this thread.
Mental aspects of training...well I believe that mental, spiritual, and physical benefits are in good training, however, I think the mental and spiritual are by products of good hard training as a member of a dojo community. These things cannot be compartmentalized, which we have a tendency to do in our western culture. work, play, and everything we do can and should be mental and spiritual as well. So it is a foreign question to me, why budo would be a separate and distinct practice from anything else we do on a daily basis.