I see participation trophies as the gateway drug, if you will to what follows. What follows is not hurting their feelings in the classroom and helicopter parents. On this board are a group of posters with kids outside the norm. They didn't get where they are without being competitive.
There's another thread about genetics. My kids have grown up watching two competitive parents. When I was dating my ex, given she was tall and beautiful, when she missed a short putt and threw her putter for significant distance I knew she was the woman for me.
My daughter left her first participation trophy in the car. My son threw his away at the gym after saying, "We didn't win the championship." In following seasons he decided they were cool archery and BB gun targets.
I remember when participation trophies started in our town youth sports program. When my daughter was seven in a fall sport when asked what I was getting my players I said I'm inviting them to the pizza shop for a family party. It was then I was told I was one of the few coaches in the league not buying his players trophies. Some parents complained. Participation trophies were approved for every sport starting with the winter sports.
One kid asked if we still go for pizza. Apparently a pizza party was cooler than participation trophies.