some people just dont like to be hit, not everyone is participating for the same reasons. Its kind of strange that you mentioned it today as I too did some light contact sparring which is something of a rarity these days, i personally prefer more contact but these are just our preferences.
The benifits? You get to try out new combos and techniques in a relatively safe enviorment, defense becomes a bigger priority, and it improves your speed.
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'...You cannot shake hands with a clenched fist...'
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