Combat Karate

I had a senior karate-ka tell me once that he/she has taught for a long time and his students practice and train in karate as a combat system. In addition I found out that he/she does not train using any type of free form fighting, etc. They rely solely on basics, kata and drills. I have written about my thoughts, philosophies and theories on the subject of basic techniques, kata practices and kumite/drills, etc. so won't get to deep here but I have to think to myself, "how can one believe that predefined kata and drills will be effective in combat."

I admit that basics, kata and drills have a purpose and without them the entire system or martial art will be weakened in the long run except I have to believe that this aspect is merely the tip of the martial iceberg. It comes down to my theory and practice that to achieve effectiveness in martial arts that one must take practice and training beyond the basics of basics, kata and drills. 

Can a martial art, like karate, be considered a combat art or system with those types of limitations (my term and theory)? Do we have the tools and information to take this beyond that level of practice and training? 

Is it possible that this direction this person took in teaching karate leads those who practice into a false sense of effectiveness that often is never tested in the fight, violent street encounter or even combat (thinking of the military here). Do we simply and blindly follow this method because of the credentials of the person leading or do we question it because we need to make sure what may have worked for them would work for us, me or you as the individual?

Any drill or predefined combative techniques or technique or combination as a teaching tool for a novice is good and solid training and practice but until it is, the individual with said techniques, etc., tested by fire may or may not actually be effective. Thinks of it this way, most military drills and training are derived from the blood and sweat of those who we follow, who have bled in battle and gained the experiences, as set down in those drills and training practices but are subject to change by the experiences achieved in combat experiences for those individuals during the current moments in time. Complicated, isn't it?

Personally, I don't think spending years and years learning and practicing drills alone will suffice in a fight or defense. It relies heavily, initially necessary, on ROTE practice, i.e. set patterns and rhythms, that need more flexibility to achieve effective fighting/defensive skills for the chaos of violent encounters. To this end this is not combat karate or even self defense karate. It has value but in those limited scenarios lacks substance to carry the day - maybe.

If I am right, then the larger and more complex question rears its ugly head - how do we achieve combat or fight/defense readiness without exposing ourselves to violent situations where it may be a bit too late?