This is true, but the question is when to start free sparring; and this will vary considerably depending on the art. Something like Aikido, which is based on leveraged throws and joint locks, requires far more time to master the techniques before free sparring, because of the risk of serious injury. Something like Karate or Kung Fu, which primarily involve striking, can begin sparring earlier, becasue of the availability of adequate safety gear to prevent serious injury.
Yeah, that is a pretty good point.