I guess we are getting stuck in semantics now when discussing this fight, so I will give my two cents - this was in no way a "competitive" fight.
What does it mean to be "competitive"? By definition - as good as or better than others of a comparable nature.
How was Olivera "competitive" (i.e. as good as or better) with Islam when he literally lost the fight in every single area that it took place? You compare it to Jones/Shogun by saying that domination only matters when "doing a lot of damage," which is a completely relative misnomer (did Islam hurt Charles in the first 10 seconds? Did he drop him and finish him within 2 rounds? Sounds like a fair amount of damage to me). I'd say that Jones/Shogun was a far greater domination relative to scale because of the amount of damage Jones made Shogun eat before finishing him, but this fight is in the relative definition of the word "domination" far more so than "competitive."
Stand-Up = Islam rocked Oliviera early for coming in reckless and basically Charles was second-guessing himself at how to effectively close distance from that point forward. He doesn't have great defense at all, he stays upright and moves in straight lines with his chin-up, but he's long and fast with a variety of techniques (punches/kicks/knees/flying attacks) so he can keep fighters backing up and afraid to engage. Once Islam shut that down by being willing to step into the pocket with counters it made Charles really hesitant to blitz, he didn't know when to do it or how Islam would react when he did it, which left him exposed. The fight started with him getting countered for a reckless pocket blitz and it ended with him getting countered for a reckless pocket blitz. He literally could not adapt to Islam's answers to his style (which was to either stifle his blitzes with clinch and/or takedowns or look to land power counters).
Clinch = Islam easily controlled Oliviera in the clinch when they did go there in the first round. His clinch strikes were more effective (better/cleaner knees), and he actually used Charles instinctive response to throw knees back to counter judo-throw him. Once Charles was able to eventually scramble up afterwords you could tell he did not want to get stuck in the clinch with Islam, he knew that he was giving up too much strength in those positions and couldn't get a Thai-clinch or anything to land knees without offering up a counter-takedown. In the second round they ended up in the clinch and Charles expended a ton of energy to work to get out of that position, so while that exchange seemed "even" one guy drained his energy levels way more than the other (and wanted out of that position in the first place).
Grappling = Islam pretty easily handled this aspect of the fight, though Charles show-cased that early in fights if he isn't heavily damaged or gassed his defensive groundwork is still pretty top-notch. However, he got taken down and controlled pretty easily, Islam played it safe early and didn't try to force GnP or a pass, just tired him out. Charles landed a really solid up-kick when Islam was stacking at one point, but Islam ended up landing a really solid elbow to close out the round. When Charles was on his back he was never actually close to the triangle/armbar but he was good at using it to create a scramble and get-up.
Realistically by the middle of round 2 he had already lost in every phase of the fight - he got out-struck and let Islam control the distance, he got out-clinched and thrown, and he got out-grappled (though he did good defensive work defense does not equal offense and if they kept fighting in those positions later as the fight went on I bet Oliviera would start to break down).
Having just re-watched it I'd say the first 90 seconds of round 2 are the most "competitive" of the fight - Charles is able to fight effectively in the clinch and at least match Islam, lands some good clinch strikes (elbow/knee), break out of the clinch, etc. However, it looks like he used a ton of energy to start the round, he was going super-hard in the clinch to get out, he tried to take Islam down and got stuck there and did not want to be there.
After he gets out he tries to get the middle-distance but he looks slow and uncertain, he gets countered almost at will and when he throws kicks and misses his feet almost stumble when he tries to reset; it's halfway into round 2 at LW in a relatively low-paced fight and dude is looking partially gassed, that's not a good sign of "competitiveness" to me. He lets Islam control the center of the cage and walk him down with combos and kicks for like a minute before he tries his ill-fated flying knee with no set-up from outside of range.
To me this fight show-cased the limitations of Oliviera's style - against someone like Islam with Charles skillset he needed to fight like an out-fighter (at least early), but he's incapable of fighting like that because he ultimately always wants to overwhelm opponents with dynamic offensive. He's not content to sit at range and probe for openings with jabs and front kicks, looking to feint and bait a reaction, he just wants to push into mid-range no matter the consequence. Which works against guys that aren't as tall/long (afraid of your kicks/knees so need to respect the kicking distance) and/or guys that don't have dynamic reactive grappling games (willing to close distance when you close distance to initiate clinch/takedowns).
That's the main reason I wasn't sold on a rematch - when has Oliviera ever shown the ability to adapt his style? He's gotten a lot tougher in being able to eat damage or survive bad spots and he's dramatically improved his offense to be more powerful and dynamic, but at his core he's still the same fighter - a dynamic offensive buzzsaw that can chew you up in the mid-range or in grappling scrambles, but highly-suspect defense and a highly inflexible approach to fighting.