I insist that Wolf participates in at least one sport (he's not a sporty kid) but because of it he has found martial arts, a passion of his, and is fitter than most kids his age (not something common in my family). If he hated it I wouldn't force him, but doing something he has to work at is great for him.
The competition thing is a developmental phase. I just had this discussion with someone. Most kids around 6/7 years old are horrible losers and HAVE to win. Eventually they learn to be good losers and good winners, but it's a definite learning process. It's part of learning empathy and to think outside your own head.