Sounds like my education and life experiences are the furthest thing from your's, but I really do appreciate your point. I think there is a fine line between allowing failure and discouragement to create a victim/loser mind-set and having folks see that everyone brings a strength to the party, but your strength may not always be the one in demand that day or you may not be the strongest at that party. I suspect that somewhere in that poorly expressed thought is the teachable moment set-up for a discussion of teamwork and learning to focus on others rather than only on self.
Some really bad outcomes (business, cultural, and personal) have resulted from cut-throat competition and an all too familiar "need to win at all costs" mentality. However, competition can be a great way to benchmark yourself and learn where you need to improve. Clearly the younger the individual, the more care is needed to guide those developmental experiences from insightful, caring folks with your skills. IME we often learn more from our valley experiences in life than we do from our mountain top moments.