Man, I love this show but there is no grey area.
Enemies or friends, good or evil. You are in Miyagi do or banished forever. They argue, they are enemies, they make up, friends forever. Daniel and Johnny argue, fight. Enemies after the tournament. So many extremes.
Maybe they are doing it deliberately, like wrestling. Heels and baby faces and not much more.
BTW, William Zabka is my MVP for this season. He is showing probably as much or more depth than he did in season 1. Great to see every scene he is in.