Students from said dojo, including myself, have been able to use what we learned to defend ourselves in real life altercations, and it wasn't an uncommon occurrence. Also, belts were not just handed out. One of the most defining characteristics of mcdojo is when they just hand out belts of rank even when the students do terrible. At the dojo I went to belts had to be earned.
As for why some of the people on this forum were calling my dojo a mcdojo was because students could sign up for belt tests at their own discretion, although that wouldn't mean you would pass. That was just the system that my instructor had in place, belt tests were held about every four months and it was up to the student if they wanted to sign up and test for their next belt or rank whenever a test came up although just signing up and testing did not mean you would get your next belt or rank. You had to perform well enough on the test and it wasn't easy, especially if you were testing for a high rank.
From my observations, instructors that are from the orient usually don't run mcdojos. With mcdojos it's usually American instructors that run them. Now obviously not all American instructors run mcdojos and Im training under an American instructor right now and he's really good and he certainly does not run a mcdojo, its just that when you find a mcdojo it usually will not be run by an Asian instructor.