Exactly, they did not spar for the precise reason that there would only be one at the end. But the technology of today allows us to spar in general saftey. back in the 50's and 60's they tied newspapers to their shins and wore boxing gloves... look at what we have today. I think with the equipment avalible to us, even the masters of old would encurage sparring.
Ufortunately I see too many people walk in my dojo and expect point sparing. I place no emphasis on competitive sparring, if my students wish to compete, then I work with them on it, but I stress seeing techniques preformed, and treating it like an actual fight. If it goes to the ground, then that's where it goes. To me it is not about sport, but about defense. Otherwise, it is mearly a game of tag. Just my opinion.