I didn't read your full post, but it sounds like you are wondering about the rules of competition for wushu?? Well, I would suggest, if that is the case, that you go check out
www.wushu.com or
www.beijingwushuteam.com - that should be Raffi's Wushu Site; if it isn't, google "Raffi's Wushu Site." I'm sure they have the rules of the various wushu competitions.
When people say, "modern wushu," they are referring to performance art wushu, with the high, flashy, jumping kicks and acrobatics, etc.....which I think is an awesome art, but it is a martial-performance art, not a martial art, the way many of its practitioners try to claim.