Absolutely. I think some degree of competitive attitude should be developed, but admissions since the late 2000s have become hyper-competitive.
Pressure makes diamonds, but it also crushes everything else.
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"It takes a ton of pressure to make a diamond". I read that in a game when I was a kid and took it as a guiding principle in my life.
Overcoming hard times absolutely made me a better person, but as I've grown I've seen many examples of the fallout you're referring to. Sometimes people just break.