Oh God, where do I start...
What you're describing isn't LARP, it's just fighting in fancy dress. You spend a lot more time walking, talking, trading, swapping rumours and the like, and if it's a decent system you'll be sorting out political dealings, long-running feuds and various ancient curses and the like that (if it's a REALLY good system) require a lot of researching, interrogating (or torturing), information pooling and the like. You're playing a character, and that means doing the kind of things a group of everyday people would be doing, even if they're magical warriors, and that means more than just hitting things. It also means having opinions and beliefs and approaches to any given situation, which you should be exploring every moment you're in character.
Even in battles, what side you take, how you fight and why should all be constant factors, not just gaming the system for the best stats and advantages. I remember two guys who were turned into vampires, and upon being told so they immediately slit their own throats. No hesitation, just instant, self-inflicted character death because it violated their character's beliefs.
Decent LARP is more in-depth than video games, because it should allow you to do pretty much everything a human is capable of doing, in terms of thought, approach and generally thinking outside the box and trying different solutions. In the system I play, out of 18 spells only 2 are directly offensive; the rest require intelligent use to be in any way effective, while half the skill list has nothing to do with combat. That's what LARP should be all about.
Not that you can't have fighting tournaments (and I'm a dab hand with the longbow), but without everything I just described it would be god damn lame.