Not accurate.
Agreed.
A misstatement of the facts. In Shiai you can take any above-the-waist grip you wish but if it is considered a non-standard grip you have 3 seconds to initiate an attack.
Judo rules - Wikipedia
It is more that the rules encourage attacking and action. 3-5 seconds for a non-standard grip just isn't a ton of time to fart around with grip-fighting. Just get on with the throw.
My club currently has a BJJ national champion training with us. BJJ black belt and Shodan in Judo (should be Nidan by now, truly). He likes to use Judo in BJJ comps. The strategy works well and it tends to throw his opponents off their game.
Stalling, false attacks, and "defensive" only postures are prohibited and can earn you a shido (penalty) in competition. That said, schools which branch out from competition don't have any issues with feints and "defensive postures." This is common in Judo clubs which teach "judo for self defense," "old style judo" or have an instructor double ranked in something like Danzan.
Judo rules - Wikipedia
Peace favor your sword,
Kirk