Watanabe isn't really taken seriously anymore in the greater Aikido community because of this. Here was the eminent Tissier Shihan's statement on this a few years back...
Sensei Christian Tissier visited South America last December, Article, Christian Tissier Shihan 7° Dan Aikïkaï, Aïkido
"Mario Lorenzo - In South America we can see that those who emphasize too much on the “KI” in their practice are not technically serious. Do you see this in other countries? And what do you think of Watanabe Sensei‘s “no touch Aikido”?
Sensei Tissier : They are two different things. On the one hand people who talk about ki, and on the other the ones who practise aikido like Sensei Watanabe. He developed something in which he is especially interested in: it isn’t a ki work but one of anticipation, sensations, whether you like it or not, or whether it works or not. It works when you know the code, but martially it doesn’t work. Being in Japan I worked a lot with him, Watanabe wasn’t like this before. He is a physically solid practicant who wanted to develop something different.
I think that if I were head of an examination table I wouldn’t take what he produces.
Now, people who talk and make constant reference on ki around the world are looking for something to justify their lack of technique. Because we all have ki, everything is ki (opening his arms), the problem with ki is its fluency. How does ki flow? When there is no block. When somebody is doing a technique and doesn’t handle it, this person doesn’t have an unblocked body. The objective of the technical aspect of the sport is to unlock every body part where there might exist a block. Someone who performs an exercise with stiff shoulders will not have a real ki flow."
Essentially, he is calling Watanabe's ki practice a fraud, just a in a rather polite way. Are there people like this in the Aikido world? Absolutely.....just like there are some in the Karate world, and fraudulent BJJ blackbelts....