Yeah, the situation you describe also shows up in school sports. One faction wants the kids to have fun playing with others and learning social skills and how to function as a team player.

Another faction wants to win, so they weed out anybody who isn't a potential star. It happened to my daughter in volleyball.

I see both points. They both have merit.

Interesting side point: after being "weeded out" my daughter became a "lone wolf" who doesn't depend on a group to promote or demote her. She has made some good decisions on her own, and now she is a very self-actualized person. So in a weird turn of events, her own brand of self-improvement came from being rejected.

Others might be crushed for life after such a rejection...

so again, it boils down to personality and how we apply our preferences to life. You can win or lose ... individually or as a team... under exactly the same circumstances.