Agree! Expanding a little

In any sports, competition should follow rules. There are always people who do not play by the rules, to cheat, to break the rules, or to bend the rules. Kids can observe, think, and make their choices, and parents do not need to worry about too much adverse consequences. Learning these is much better in swimming pool or soccer field than in real life. Parents can provide suggestions and advices for kids to manage these situations.

Being defeated/frustrated, how to deal with it many times, before achieving a victory. This is priceless.

Most people are shy and like to follow. But people are typically not shy to cheer when participating or watching a game. Opportunity for kids to stand up, take the lead to cheer team mates, and develope leadership.