Should Youth Football be Competitive?

I’m a little bit split on this. On one hand, I read someone’s blog which said about how we as a country are not competitive enough etc. Well also, I remember my older son. Whatever you say to him, he wanted to win. From the moment he participated in all sports. So are we doing the correct thing by taking that away? Probably not. That’s not the problem though; the problem is as a coach and parent do we want that win as passionately and at the cost and potential detriment of his development. When I coached in mini soccer i took a lot of stick from parents that would challenge my theory on the game, like position rotation, player rotation, playing from the back etc. But i had the strength of character to stick to my guns because i believe that whilst we need to have that 'will to win' as adults in all walks of life, we clearly don’t have the technical ability to compete. I’m sure if Barcelona played football against the New Zealand rugby team they would win. Equally I’m sure the hukka would show how much New Zealand 'want' to win.
We used to do well at mini soccer, even with my methods. But we always got beat by certain teams, without naming names. One lad (outfield) would take the goal kicks, he would smash it up the pitch with his toe and the big quick kid up top used to push his way through... goal. Nearly every time. But i didn’t care. My keeper would take the kicks, even if he mucked it up, i would say, don’t worry, never mind. Then, in training would show him and the team movement, receiving and passing technique. Parents challenged me. "We could have won that" . But i was brave enough to stick to my guns. Of course i didn’t 'want' my team to lose. But i wanted them to learn.
I have recently seen this team again, now at U14's. Guess what. The lad still takes the goal kicks, but now he can’t reach. The keeper can’t play with his feet, the big guy up front, isn’t the biggest anymore, the defenders don’t ever take more than one touch and don’t want the ball. My old team, pass the ball back to front. They play off the keeper, he takes the goal kicks and plays through his defenders/midfield. Added bonus to that, do they want to win? You bet they do! They romped their league last year and another two players signed for the local pro club! Victory, I’m happy with that, that’s my win!