You've perfectly described every martial arts gym / training session that I've been part of. Touch / light sparring is reserved for intermediates, and reflex /

You've perfectly described every martial arts gym / training session that I've been part of. Touch / light sparring is reserved for intermediates, and reflex / defensive drills are a strong prerequsite, and under no circumstances is anyone allowed to go "full speed". Even in the grimiest of boxing gyms, unless you are explicitly training for a competition, I have never seen this rule violated.