Stepping back a bit -- it brings up the issue of motivation: is just learning something enough, or do we have to make a competition out of it? I see among my students a few who value knowledge and understanding for their own sake; for others, they are a means to an end; and still others fall somewhere in between. I would say that some level of comfort with a competitive atmosphere will probably come in handy for most people, perhaps especially those who were born without that 'fire in the belly', that burning urge to compete.
I don't see anything wrong with a competitive spirit, some people are just wired that way (my husband for instance). Some kids are intrinsically motivated and some aren't. My husband did well in school because he liked being the best. I did well because it was interesting and it didn't take that much effort to get perfect grades.
If I had a child that wasn't motivated by learning, I would probably find some other way to motivate them to do well in High School. Hopefully, they are competitive then! If only because I don't want to pay for College! lol.