We're talking about real life situations, not ones in a gym.
I do usually see KM practitioners training on the street, so this comment holds a lot of water.
Anyways, not hating on Krav I've seen some cool shit from those guys.
Coolest stuff I have ever seen from KM was when it was "infused" with BJJ years ago, in a version called "KAPAP" - John Machado was an 'advisor' on the project.
But even then, there are some unrealistic "street" scenarios that include rubber knives and guns and the like.
Until we start hearing of massive deaths due to the "realistic" practicing of these traditional martial arts, (you know, because they are actually practicing to defend against deadly force by using, well, deadly force) then I don't tend to see any of their "street-ready" propaganda as being anything more than a sales technique disguised as scare tactics and excuses.