Proposal:
Wifi battling is not considered competitive.
It's competitive, just not as competitive as Shoddy. I'd agree with the statement, though, especially when you look at the facts:
1) Rotom forms can be used on shoddy, not on wifi
2) Hacking stats so that they are illegitimate is much easier on wifi than shoddy
3) There are other glitches such as acid rain on wifi
4) Every pokemon is on an even playing field IV wise on shoddy. Unless you get lucky in wifi...
5) Freeze clause is un-implementable unless you stop using freeze moves (which is unfair)
While the metagames are similar, it is easier to give one player the advantage over the other on wifi. While there are some features such as a hax decrease on if you get flinched twenty times in a row (well, at least in theory) on wifi, otherwise shoddy is more of a fair meter of skill. I'll always be more of a wifi player, but I admit the skill it takes to win is much lower.