Okay, I think I see where you and I are differing on this one, Steve. See, I don't think of the competitive points as where to develop most things (except better live readings). Drills and practice are where we develop the skills, and the competitive element is where we test them out. Given how scarce aiki opportunities are (as I define them) in competition with folks who understand grappling, it's not a particularly good place to develop that feel. In fact, it's more likely to foster folks taking the leverage route rather than the aiki route.
I think I need to take some time and refine how I explain my definition of aiki - it seems to confuse everyone but me when I use words to explain it (meaning they get a different definition from my words than the one I'm trying to give).
As for the variety of competition, I agree with you for the most part. I just have no interest in competitions, so have limited that variety to rolling/sparring/playing with folks from different arts on an informal basis, rather than entering competitions. Competitions add some elements that matter less in a short self-defense encounter (the stamina to stay with someone at my own level for several rounds, for instance). I don't know - maybe if I'd had these discussions 20 years ago, I'd have a different attitude. But I do know people who trained their skills without entering competitions, using other training methods, and developed skills that served them well in real encounters (again, looking mostly at LEO's and bouncers). The real differentiator has been testing their skills in various ways, training with good intensity, and being willing to look for flaws in their technique rather than just polishing endlessly without regard to effectiveness. Most of them had experience in more than one art, giving them a more informed filter for evaluating the techniques and applications in each.