So I know that this has been discussed - quite heatedly - in the past, here.
And I know that there have always been people saying that there is ambiguity, on account of translation from Japanese to English, about O'Sensei's opinion.
There really is no ambiguity. I haven't read the English version yet, but in the original Japanese Kaiso states quite clearly at one point that competition (specifically, "shiai") is strictly forbidden.
Whether or not you agree with him that this is desirable is a completely different issue, of course.