What you're talking about sounds like fraud. Not all McDojos are owned by con artists, although some undoubtedly are.
I am going to risk speaking out of turn, so I'll gladly accept correction from those who know. But I've heard a lot of criticism of TKD schools who train Olympic style competitors. Let's just presume that it's ALL point sparring and Olympic style sparring and that they never, never, ever focus on Self Defense. If the competitors are earning rank in a way that is consistent within the style AND they are learning skills which allow them to be competitive with students from other schools AND they are happy AND their parents are happy AND the school owner is making a decent living, who gives a damn whether it meets someone else's arbitrary standards for what a martial art should be? (sorry for the run on sentence. )
So, that being said, the quality of the instruction and the qualifications of the instructor are independent of the business model.
To give an example, I know of some BJJ schools that are wildly successful and operate using what I would consider McDojo style business practices. I don't have any problems with it, and I wouldn't have any reservations at all recommending the instructors or the schools to a friend interested in BJJ. The owners are very good technicians and excellent coaches. They want to make a living doing what they love. More power to them, I say.
Conversely, I know a guy who isn't a McDojo, but who basically bought a black belt from a legit BJJ black belt. He runs a moderately successful school financially, but I'd never recommend him, because I question his integrity and also have reservations about the quality of his instruction.
Your comments are reasonable. If a school omits self defense and pushes competition, there is nothing wrong with it. They should not, however, tout themselves as a teacher of SD. Competition training is hard work!