Mental toughness in any position has to be cultivated over time working through failures and losses over several seasons. I think it depends on whats on the line during the match...Short term during the season it might seem stupid but over the long haul of the season a kid should be learning from their mistakes. If you get ridden out figure out why... watch tape, spend extra time and skill work in those positions, spend more time in the weight room, etc.
In my opinion kids should be developing in all aspects of their wrestling but in marquee matches in the post season more strategic decisions have to be made as a coach.