Boxing, for example, is hugely restricted to avoid grappling and yet the fighters still try to clench up regularly. Actually staying on your feet, throwing punch after punch, is hugely unnatural. But boxers that learn enough grappling to escape submissions can cross over to MMA and do respectably well, because they have the skills to bring down someone at a distance.
Judo, likewise, is full of artifice these days. There are mamy restrictions on the types of holds, penalties to avoid stalling, scoring balanced heavily towards getting off an impressive throw, and a limit of up to twenty seconds to get a pin. But these restrictions also compel judo players to develop strategies for a quick, confident takedown and submission.
The styles that suffer, in contrast, are the ones that may have had relevance in the context of weapon fighting but are now mostly performance - the tai chis or aikidos of the world. Krav maga persists in part because its design works with the smaller knives that modern armed forces continue to use.
Ultimately, the point of training any named techniques is to develop muscle memory - what that memory is used for is secondary, and in that sense all popular systems succeed.
>Growing up watching a lot of Kung-fu/Wushu movies from Hong Kong
The problem with Kung-fu/Wushu itself, it is for one people over idolise it, second being it completely lost most of its root in Mainland China during the 2nd World War and later CCP forbid the use of it. ( At one point they over emphasise science / Guns / technology and calling Wushu as old fashioned and not up with time during the Cultural Revolution, of course in reality CCP doesn't want to arm people with fighting skills ) Most of the Grand Masters ran for life and arrived to Hong Kong during that time, that quickly spread out as a culture and hence why later you see many Kung Fu movies from Hong Kong.
So yea, it's looking like it's had a lot of success in theater but not in combat.
For example, Jiu-jitsu, Karate-jutsu, Krav maga are very popular among police academy & military camps around the world. Even Ken-jitsu is taught in Tokyo police academy as well, though not very popular outside of Japan. Those martial arts are designed not only to be very practical in physical contact (neutralize opponent in the shortest amount of time) but also increase the mental toughness. Their cousins (replace the jitsu with do) are more sporty and humane, thus popular in the Olympics.
Growing up watching a lot of Kung-fu/Wushu movies from Hong Kong, I was amazed how artistic it was: beautiful kicks, long-rally sparring time. After getting into Ken-do and boxing, I noticed a typical sparring match lasts at most a few minutes. Then, I came to realize that how a practical martial art is vs. the one with more emphasis on art form. I'm sure certain styles/forms of Kung-fu are more practical (i.e: focusing more on neutralize opponent) as they were intended to be. But over time, the dramatization of motion pictures destroy its original purposes.