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Shin said McDojo-ism is a whole different area which is true. While I don't like a belting system, parents do. And thats the targeted audience: people who don't know about the industry but enroll their kids for extracurricular activity. Obv they want to see milestones in their "investment".
It is also good to have goals. I think the belt is often overemphasized. Perhaps they should create a tab or a patch for those who have proven themselves in certain levels of fighting?
Hear me out
You know how outlaw mcs have patches for members who have proven themselves or done certain things? The dojos could implement a similar patch concept. You've fought x amount of kumite, you've done full contact kumite, you conveyed the bunkai or self defense application of each kata etc.