Not to defend against the people not bashing Karate, it all comes down to the instructor. If that person is not able/willing to break down all the potential application of the kata, then the student cannot learn them. If the instructor only teaches tournament style, then the student will not have street applications.
All MA styles lead to the mountain top where they become one. The student can only go a little further than the master before needing a new master.

One of my favourite glory moments was a young lady I taught some techniques to in a Saturday beginner noon class. (Street [real] applications of a traditional yellow belt kata sequence.) After the class she was to meet her friend downtown. Two guys tried to rape her in the parking lot. When they pinned her to the car, she went right to what she had learned less than an hour before. She knocked one out, and scarred the other and ran. The police went through the downtown bars and found scarface, then they got groggy buddy, and they're both still doing time.

Don't you just love it when a plan comes together.