Personally, I don't much care for Karate Combat, but I'm also looking at things from a particular point of view, which I can admit is somewhat limiting. All of the competition circuits for karate are based on the approach to karate that was developed by Funakoshi Gigo and his ilk in the mid 20th Century, and is a very poor representation of the types of fighting methods that are actually part of karate. You can add contact, and that makes it a better representation of fighting, but it doesn't make it a better representation of old-style karate. Unfortunately, sparring methods that are more representative of those methods aren't very good spectator sports, at least for the wider audience with an attraction toward karate.
Disagree. Gigo Funakoshi might be responsible for WKF-style competitions, and Karate Combat (since it's taking practitioners who historically have trained for WKF competition) is still going to have a WKF flavor despite being full-contact. But Kyokushin and Enshin competitions (and all the other knockdown karate competitions) have a very un-Shotokan approach. And then there's the whole kickboxing scene that grew out of the Professional Karate Association in the 1970s with Bill Superfoot Wallace and those folks...