I would say it depends entirely on what your goal is.
There is certainly plenty of reason in studying traditional martial arts, if for no other reason than simply keeping the styles and traditions alive. In addition, any traditional school worth its salt strives to instill in the student respect, self-control, discipline, and true character.
For instance, I'm studying Kendo. And I agree - it is one of the martial arts with the least "street value." However, the "intangible" benefits are legion, plus, it's a very good workout, and is really fun. I've always wanted to do swordfighting, and been enamored with knights, samuri, and all that stuff. So for me, it has plenty of value, and is still relevant.
However, if your goal is to be able to scuffle in an alleyway and always win, then what you're saying is right on. You'll need to study the harshest, fiercest, bloody-knuckle art possible, that emphasizes taking out the other guy with whatever's handy, as fast as possible. There would be no fancy leaping kicks, you wouldn't have to "warm up" or start out with stretches. You'd just get in there and get it done, if you couldn't get away.
Then again, if society goes to pot, maybe I'll get to pack my Glock on the right hip, and a katana on the left, and we'll see if you're weaponless style beats my kendo ;a