This is where I my issue begins and ends. While I wish everyone would train it as a fighting system and put in the work to use it. I'm OK with people just being honest about their training.
Me too, pretty much. I have friends who are into all kinds of things, and as long as it isn't harmful, cruel, or demeaning to themselves or others, I'm pretty much all for it. Folks have all kinds of kinks and quirks. Bronies, furries, larpers, gamers, gay, straight, polyamorous, non-binary... whatever it is. If it works for you, is fun for you, and you aren't harming yourself or others, knock yourself out.
I have played role playing games since 1981, and it was SUPER NERDY for a long time. I was a nerd when being a nerd wasn't cool. So, I think I'm about as "live and let live" as I can be. And that's how I view most martial arts. If you want to train toad style kung fu, great. There are things I like about most styles
People can train for function and still have fun, still exercise, still do cool stuff, all without degrading the system and understanding of it. I feel the same way with sparring. Sparring doesn't have to be brutal. Light sparring is safe and can be functional and fun at the same time. The most important thing about sparring is that it's always a reality check. People will know right off the back their limits. This would go a long way in keeping expectations in check.
Heck yeah. But it can also be fun, good exercise, and cool... and be entirely impractical. And still be worth training for the fun, the exercise, maybe cultural preservation... and a host of other great reasons.
I don't like con artists. I don't like when folks are sold bunk. And given the stakes involved here, it's not harmless to convince someone they can learn to fight without fighting, and get to a point where they can even teach other people to fight without having ever been in a fight. Worst case, it's predatory and dangerous.