Yup. You suck, should probably give up on Pokemon right here and now.
Depends on the tournament, and how long you've been playing. If you've been playing Pokemon since the very first game was released, scrutinizing every statistic calculation and equation, and have just been crushed in the n00bie tournament for n00bie n00bs, then it might not be your cup of tea. But if you just entered the world championship for OU Pokemon battle, and lost 1 to 0 by only 1 health point, then I wouldn't take it to heart.
It depends on the circumstance.