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You can try to visualize it for now, since you know enough basics to get it.
My character takes a step forward. My opponent can't figure out how to safely attack, so I attack, I succeed.
At that point, I'm playing my character.
My opponent is now down, I pressure maybe. They don't know how best to defend, but they manage to keep blocking. I'm still playing my character. They try for a counterattack that I predicted and get hit.
Still playing my character.
My opponent decides that 'being close to me is a bad idea whether they are trying to hit me or defend', and then backdash. Six times. I walk forward. Keep walking. Opponent eventually gets to the corner, right?
I wasn't playing my character while walking forward, exactly, but once corner happens, I can do it a bit.
One of two things is about to happen. Still with me? If not, reread a bit above.
Either I'm going to attack them while they're in the corner and succeed, or I'm going to fail the attack and get knocked down.
If I succeed enough times, I win. If I fail the attack and get knocked down, my opponent jumps over my character...
And starts backdashing again.
If I want to WIN the fight, I stop here, I can wait until I win by TimeOut. I don't want to Win. I want to FIGHT. I walk forward. And I attack. until either I fail all my attacks and lose, or succeed enough and win. But every time I fail an attack, and my opponent backdashes all the way back across the screen for 11 seconds, I am not playing my character.
If I can get OUT of this type of match faster by winning, I will win by TimeOut. Not because I want to win. Because if I'm up one round and I have a choice of 'winning Round 2 and ending the match' or 'my opponent backdashing for 2 more rounds until they win' (while I'm not getting to play), I should win the match so I can get to the next one. Because this will get me another chance to play my character.
There's never a point in that sequence where I am thinking "I am having a competition with this person."
They're not necessarily a bad player. They're not even necessarily a weak player. They have sometimes CORRECTLY concluded that the best way to WIN is to backdash and hope I mess up. They are 'competing'.
I am not.