While you may have some valid points about building character you need to realize some other factors that take place in these blowouts. My team plays in a non-competitive region where our games take up to 3.5 hours round trip. We must play these games because they are region opponents and I would like my student- athletes to get home before midnight on a school night. There are more important things than finishing a completely one sided game.
To speak to your point about match fitness, when the score is absurd at half the opposing team often loses their fight, so who is getting match fitness from that? My answer would be no one.