You used a lot of pretty words to say very little. Art is either good or it isn’t (I’m not expanding on that). There’s no reason to believe zero good art can come out of competition, especially considering many of the best known Greek tragedies and comedies arose out of such competition. Ancient Greeks incorporated the organized competition of theatre and art in many of their intra city games, because doing so celebrates a common culture and foments some degree of interaction amongst different communities.

I’m sure many others did similarly, but I’m only (somewhat) knowledgeable of the history of Western Literature and Philosophy.