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Personally, I hate competitive sports.
I feel intensely pressured to do my best and, When I fail in front of EVERYONE, Well that's just embarrassing. But for a large majority of kids who participate in competitive sports, They are able to develop and build friendships while improving their physical and mental health. It really depends on the child.
Throw me in a soccer field and tell me to play and I will probably stand right on the edge of the boundary lines, Watching everyone else win the game for me. For those who have crippling social anxiety, Then competitive sports probably is doing more harm than good. But for someone who has a passion for sports and does not have any form of social anxiety, Then they'd probably be fine.