Before the term MMA came along it was called American Freestyle and combined Karate, streetfighting and moves from other systems.
Karate can be very political and I knew guys who did not care about the politics. Rather than line up with an association and teach under their 'umbrella' they went off on their own and opened schools and taught without any political attachment. Many dedicated their efforts to training and improving their fighting skills and teaching rather than politics and building an empire. I know guys who trained and taught American Freestyle and were incredible fighters but with anything I am sure there is junk out there as well. It all depends on the teacher and his/her intentions/reasons.
The general history of Karate came from China like in 600 AD
Then it evolved in Japan, and Japan brought it to Korea
And it has many styles:
Kenpo Karate/Kempo Karate
Shitokai Karate
Shitoryu Karate
and many more..
Freestyle Karate is from the US and is a combination of Karate styles not just one style.
Thus, freestyle. And depending on who are the instructors at the dojo/gym/training center will tell if it is either real or just some made up junk. But for the most part it is real, and the US Army implaments many parts of it into its hand to hand combat.
the philosphy behind freestyle karate is to use what works.freestyle karate takes all the best techniques from other styles(including boxing and street fighting)and then improves them and incorporates them into the style.most freestyle karates also still retain tradition.and yes it is real budo.its like any other style though theres good and bad.
freestyle karate incorporates stand up,ground/grappling,weapons and practicle street wise self defence.most freestyle karates are based on goju ryu.
Dan Anderson, noted point fighter, wrote a book called "American Freestyle Karate"
back in the 80s. Good book. Freestyle means drawing from a variety of sources, and being willing to change.