As far as I know, karate originated as unarmed fighting techniques used because possession of weapons like swords by ordinary people was very much illegal. So the beginning was quite practical.

However Shotokan is a bit of a special case because its founder was of the opinion that competitions and contests were the wrong approach and the point of karate was, basically, self-improvement. I don't know whether the founder tried and failed (at effective combat) or just didn't try.

In the West there is considerable social pressure to restyle martial arts as a non-aggressive system of exercises which aim to teach discipline (in particular, obedience to authority), provide some strength and aerobic training, and make you look cool.