Yes, I would let my kids play contact sports. The vast majority of kids are simply not talented enough to play sports in high level high school, college or professionally.
Earlier this year, an accomplished CrossFitter in my gym got Rhabdomyolysis and was hospitalized. Athletics and exercise bring risks.
For me, I think the better and far more important discussion would be whether I’d let my kids ride ebikes, often ridden w/o helmets, doubling up on seats at high speeds.