The main difference between traditional and modern martial arts training is basically that traditional training is much more indepth at every level: physical, spiritual, and ethical. A life long practical study and practice that is about life and how you behave in it. Traditional training is not about the perceived concept of winning, but rather how you win and therefore what you win. Traditional training is very much about fighting and using all your senses and physical prowess in a very powerful and controlled manner.
Everything has its place. Sports fighting is mostly for entertainment. Military style martial training is generally used for killing. To put this question’s answer into perspective, traditional training is complete and is for life, about life, and with life. Modern versions are about how to get the job done the fastest way possible. Nothing more, nothing less.