Here's something to think about when someone talks about how tough the training at a particular school is or isn't...
Suppose you wanted to do some weight lifting to get stronger and you were scouting out potential gyms. A friend tells you "at gym A everybody bench presses 350 pounds, but at gym B everybody only bench presses 60 pounds. Gym A is obviously the real deal, and B is a McGym."
Would that even make sense? Weight lifting is a progressive form of training. In order to get results, you need to start out at a level your body can safely handle, push your limits just enough, then gradually increase your weights as your body adapts and gets stronger. This has to be geared to the individual. Asking a professional football player to practice curls with 5 pound hand weights is a ridiculous waste of time. Asking an out of shape, 110 pound, 50-year old woman to deadlift 500 pounds is an abusive attempt to injure someone. One size does not fit all.
Why should martial arts training be any different? Different people are physically, mentally, and emotionally prepared for different levels of training intensity. The appropriate level of training for a Navy Seal is not the appropriate level of training for a naturally non-aggressive couch potato who has never been in a fight or played a contact sport. Just like weight training - you have to find the right intensity for an individual, then take them just far enough outside of that comfort zone that they can grow. Remember, the individual's mental/emotional readiness is just as important as their physical readiness.
There is the complicating factor that martial arts is normally practiced with training partners. (Unless you practice an art which is all about solo kata.) This limits the ability of a teacher to completely individualize the level of training for each student. Still, you can have separate classes for students who are ready for different levels of intensity. Within a class you can adjust the levels of intensity by assigning appropriate training partners and fine-tuning the training drills as needed.
In summary, it's not the absolute level of training intensity that matters. It's finding the right level of training intensity for the individual student to learn and grow.