"While I sympathise with the sentiment, the phrase "to compete means one can lose" is hardly reason not to compete. Life's about taking chances and, like it or not, the music business is highly competitive".
I think you're missing the point. Yes, just life itself is a competition. We compete for looks, talent, strength, power, resources, etc.. However, if a person is in a situation where they are being rated, the last thing they should be thinking about is the outcome. The object is to do the best with the skill and resources available. Being excited to perform is one thing, thinking about the unknown (winning or losing) is a grand waste of time and has the potential to amp the subject up to a point where the adrenalin is running too high. Maybe thinking about winning and losing should stay where it does the most good, playing the lottery.