Hi,
Sorry, Chav, I've got to take everyone else's side here. Aikido is multi-faceted, and while I can see your argument that it is not the most practical of systems, I would hesitate to say that it simply doesn't work at all.
As stated by many others, it will often depend on how you train it, just like any other art. I also feel you may be (unfairly?) taking one version of the art, and the way you were taught it as the only method in which Aikido is transmitted.
For a "harder-edged" version, I would look to the Yoshinkan group, who take their teachings from Gozo Shioda, who was a first generation student of Ueshiba Sensei. Shioda left Ueshiba when O-Sensei began changing his philosophical approach to a more "gentle", or pacifist way of thinking. Shioda began teaching Aikido according to the way he learnt it. And where he learnt it was in the early school, known quite appropriately and accurately, as Jigoku Dojo, or the Hell Dojo, due to it's reputation for very rough training and quite serious application of techniques.
Oh, and Ueshiba Sensei himself said that Atemi is essential, so any Aikido school not teaching that at some point is missing a major part of the art. Is there the chance that that aspect was perhaps missed in your experience? So, yes, the use of strikes is not only evident in Aikido, in order to apply the techniques, it is consideredvery important. But the training is often done without the strikes, so the student doesn't get lazy about applying the principles of the art.