A lot of Sabin's Blitz moves aren't based on physical contact either. Furthermore, if you're going to throw out magic because "it's too much like guns", then you also need to throw out weapons because those wouldn't be allowed in real-world wrestling matches either, and Gau and Umaro are arguably stronger with bare hands than Sabin (especially Gau, who could just use Catscratch to eliminate the competition).
Anyway, Mulley explicitly said the match is up to our own interpretation of how it would be staged, so your interpretation of the rules is no more valid than anyone else's.