I say you did the right thing, I throw matches IRL all the time when fighting my homies who don't get to play as much as I do for not having a next Gen console. I mean let's face it, people who are not interested in playing any fighting game on a competitive level won't continue to face someone with fundamentals and better playing. That's were the gap between casual and competitive lie. You probably made that dudes day, him and his son(no matter the age) shared a victory and bonding experience. For example;1.5 million years ago he would have been neanderthal papa showing neanderthal bubby how to hunt or display status in the group. We are by our very nature, violent beings. It's a part of what makes us who we are, human.
It's mostly the sheltered that rebel, turning into addicts, murderers, inmates, thieves, and all around garbage. Or They completely feel in society and become shut ins then develop agoraphobia or some nervous disorder. I was 9 when mortal kombat slammed into arcades and it really wasn't the blood that drew me in, it was graphics beyond I'd ever seen. My brother was born in 94 and by 98 he was grinding it out with me on mk2 and umk3, at the arcades to boot! He called it morma kombet or fights lol! I just don't think it's right to deny our youth of what comes instinctual. At the end of the day we're all just weird unusually advanced primates duking it out on a small blue planet, within the third arm of the milky way floating towards an even huge galaxy.