While in hand-to-hand combat students need to test their knowledge to gain confidence, the too dangerous stuff could be tested logically.
The problem however in such a profession, is Instructors without proper experience teaching static techniques that were never tested dynamically to people that have no intention to test them until they are forced to use them unsuccessfully. That might cost them their lives!
In the long range, closing the gap and lunging into the hotzone, and generating impact on the target, is tested dynamically on a partner holding training mitts. They are also tested in modified strength sparring by not penetrating the target enough to cause severe damage.
The advantages, in sparring is that you can test the element of surprise which involves maximum efficiency without projection and reach to your opponent's pressure point by surprise! Immi, the creator of Krav Maga used the term "arrival/reach" saying he arrived at the opponent's pressure points (Higaati Eylav).
When it comes to close range grappling which involves escapes from restraining techniques or attempts to use to momentum of gravity as an injuring force, while the kata/static, or somewhat dynamic part of a technique broken down can be suited to almost any people that are in a good enough condition to walk, many of them have limitations of restricted motion on the ground emanating from flexibility of the joints, dizziness, and other. So many of them might not benefit from too much grappling.
For the more ground fit humans, you can simple test Pure Krav Maga techniques by grabbing someone's throat, testicles, or shoving your thumb into their eye slowly.
But again, what instructor would want to take the responsibility of mass training and sparring allowing training partners to use judgement with the level of force they apply in such a close range on soft pressure points.
It was done in the Israel Defense Force only after trust was developed among instructors and students!
Originally, there were few techniques that were intended for scenarios like grouping, or restraining without throwing. However, while use of judgment is always welcome, in worse case scenarios, attackers that want to take less risk in accomplishing illegal acts of violence, will resort to all possible infliction of violence. When caught by surprise in the close range, you just cannot afford taking the time and trying to identify the intention with the initial pull, push or fall.
While you can still separate techniques to be used in various levels of escalation of force in lay man's terms, you have to ensure you know what I am talking about, and most important, you have to ensure that your students know what I am talking about as well!