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They may have but the problem denominates to competitive society. The issue is not a difference in genetic abilities between people but primitive value system focused on importance of proving who is better and ignoring people's differences or even seeing them as negative.

Yes I think you are correct. I suppose the fairest system would look at how well people perform based on their own potential.

Yes :-) As you see, that does nit even apply in schools. It already starts with kids being thrown to one bag regardless of individual abilities and interests. Then forced to compete for grades and all harshly judged for failures.

Yes. The only sport I can think of that does it differently - at least to a degree is golf - it is rare for kids to play that though. I think our society either focuses on rewarding absolute achievement or goes too far the other way and rewards people for being themselves which is not helpful either. There seems to be little regard for actual personal improvement and meeting potential - I think in part it may due to under-staffing in most schools and the factory style of teaching.

Golf quite competitive too. Any sport is. I myself find golf really mindless. Ridiculous amount of space being transformed/wasted into ecologically barren landscape so someone can drill few holes and try to fit tiny ball in them. At the same time zillions of fresh water is being wasted to keep that crap growing? On top of that it increases the price of land. Basically, massive amounts of land are being wasted while many people are so poor that even own 1 m2.

Yes - if it was being used for public parks it would be good but they are private clubs in most cases.

Oh yeah, parks are one example. Private clubs for circle jerkers with sticks up their asses (or golf clubs) :-P