Hi I'll try to keep this short. Compition in MA only realy hurt the art if it prevents the students from learning it fully. Such as banning certain techniques as unsafe for compitition. there also if the problem that many people are competiters and not martial arts. They fight only for money or fame. Not for learning what their weeknesses might be or for improvement.
I think that most martial arts are still in good shape. I think that the problems are in some of the dojos and some of the students.