Had not Eklavya presented his right thumb as "Guru Dakshina" to Guru Dronacharya, Arjuna wouldn't have become the greatest archer of his time.
Competition is always a good thing. It forces us to do our best. A monopoly renders people complacent and satisfied with mediocrity. Competition pushes us out of our comfort zones and makes us test our own limits. It is nothing but that heat which melts down the iron and separates it from the impurities only to turn it into strong steel.
Competition channelizes our hard work and brings out our creativity. It is competition that makes us strive for success. Yes it is rude to those who lose, but it gives the world the diamond buried under the heap of coal and brings out the zeal to excel, the zeal to showcase our talents.
It is an incentive to progress.