I don't think that competition is either good or bad. It just is. Rather it is how we think about it and cope with it makes it good or bad. How much we stress the importance of competition that gives it a larger space in our lives than it deserves.
Although theoretically we parents are supposed to leave everything to the coaches, that's a little like saying that we are supposed to leave it to the teachers to get our kids to school and make sure they do their homework.