My experience has actually been the other way around. Typically, when someone says that they train Gracie Jiu-Jitsu, they are likely to have maintained the original self-defense curriculum. That does not mean that they don't compete, because they often do. Some of this depends a bit on the side of the Gracie family you are referring to. If you are looking towards the Helio Gracie side of things, I think you will see a greater likelihood that the original self defense curriculum has been maintained. If you look toward the Carlos Gracie side (such as Gracie Barra) you are likely to see less of that, and a more sport focus, though some, such as Draculino, have certainly maintained the self defense aspect of things.
The Machados are certainly legit, so that isn't even a question. However, from my experience, they are focused on competition, but they certainly have guys that they have produced, such as Chris Haueter that have maintained the original self-defense focus to a large degree.
It's a bit complicated.