Martial arts are physical endeavors and, as such, accidents will happen and injuries will occur. Therefore, I certainly agree that martial art organizations and schools must protect themselves against frivolous or exaggerated lawsuits, especially those that arise from participating in normal martial art activities. However, in the agreement that I presented as an example, the organization is attempting to free itself from any liability, even from injuries associated with its own negligence.
The red highlighted areas of the example are areas that should be of concern to potential members of the organization, and I underlined areas that seemed excessive. While I think the liability release section of any agreement should be of concern to signers, it does not mean I think the section is unneeded.
From what I understand about the law, an organization cannot free itself from liability due to its own negligence by requiring its members to sign a release to that effect. Any organization that requires such a stipulation would be trying to free itself from any liability, even from unorthodox, dangerous teachings, an unsafe facility, unsafe or unhealthy conditions, or incompetent, unqualified instructors.
The stipulation would mean the organization, in an effort to discourage any type of student lawsuit, was attempting to mislead students into believing they have no legal recourse if they are injured due to organization negligence. While such a stipulation may be useful in discouraging lawsuits, any organization that requires such a stipulation appears to me to be trying to mislead, and thus rip-off, its members.