What is a competitive game? A game which is a challenge, a game whose outcome is not preordained at the start. A game, where if I make the right choices, I will win, and if I make the wrong choices, I will lose. A game where every player, every team, has a reasonably equal chance of winning. If that is the criteria, then random teams and auto-dist are effective ways of creating a level playing field, where every player has a reasonable chance of winning.
Isnt the starting position the even playing field though? The game starts with making picks, not with the first turn. Every player has a reasonable chance on winning. If you make mistakes, you lose as a result. This goes for picking as well.