It seems like "Master Ken" is trying to avoid actually insulting any art and is sticking to safe jokes. He is, after all, a humorist who spoofs the martial arts while being entertaining. But IMO he sacrifices some edgy humor that he's quite capable of, in favor of not offending anyone.
I do think the earlier stuff was much better. I read some background information and found out that a lot of what happened in the first season actually did happen to the actor when he moved out to New Mexico and tried to find a new dojo. I think part of the brilliance of the show was that it was partially based on things that actually happened, and now they've run out of the real life examples to use.
And yes, apparently the groin-grab sparring match was a real thing, and his partner was a woman.