Do you realize the self-fulfilling nature of the system you describe? It seems somewhat recursive to rationalize that the nature and environment you experienced at MIT was a good preparation for "real life", when the "real life" was also populated by equally damaged and self-harmed individuals. It's kind of an obsessive-compulsive abusive cycle that really isn't necessary, but no one knows how to break out of because, as you state, there is a belief that it is a "good preparation for real life".

It's really a bit of a hugely larger social and cultural issue, our willingness to work ourselves do the bone, with utter disregard for well being; all driven by anxiety and obsessive thinking.