Competition = noncooperation? The example of a pencil

After watching Milton Friedman discuss the production of pencils, discuss the following questions:

1) A common perception is that competition in business means companies trying to destroy their competitors so that they can bleed every last penny they can from consumers. Given Friedman's commentary, how would you respond to such a perception? 2) "Competition" is typically given a negative connotation, that it drives people apart and makes them antagonistic. The perfect competition model seems to suggest this would be true: consumers and producers have completely opposite goals since consumers want low prices and producers want high prices. Given Friedman's commentary, in the aggregate how much does market competition foster interpersonal antagonism? Do competitive markets drive people (customers, business, workers, etc.) apart?