- On the battlefield (warfare)
- In "the street" (self-defence)
- In sporting contest (competition)
- At work (leadership, teamwork, strategy, negotiation)
- At "school" (learning, teaching, making friends, dealing with authority)
- At home (interacting with partner, children, parents, siblings)
- Everywhere (maintaining or improving health, movement, and attitude)
Can anyone reasonably say that any one arena is more important than all the others? Maybe for a particular individual at a particular time in their life. But this will vary from person to person, and will change over time with situation and priorities.
The martial arts started with direct application of technique to dangerous situations. The martial ways were developed to bring broader benefits to their practitioners.
Skill and character are both valuable.
For example: Here is a report and commentary about a nine-year-old boy with limited training who showed courage and skill to save a friend and her chihuahua from an attacking pit bull.
Not even professional dog-catchers train specifically for that!