Here's my take, and this is based only on what I've been able to see and experience personally, so others may be able to provide better perspective. I think most of what you see in traditional Aikido practice is NOT meant to be application (at least, originally). They were movement drills, intended to exercise principles and methods of movement. In TMA, when doing that, often things are exaggerated, so that students don't shortcut too much (students typically don't make as big a movement as you want when you want big, nor as small a movement as you want when you want small). If we also go back to the assertion that it was mostly taught (early on) to folks who already had a fighting base, it makes even more sense. Take a good Judoka, and just work him only on the movement principles he doesn't have, or which are barely present in his Judo. Thus, the training is all highly compliant and over-emphasized aiki, because that was the point of training. If that's true, then it wasn't ever intended that training would necessarily look like application. Even when I find myself applying aiki (and feeling it fit perfectly) in a more "live" situation than classical drills, it doesn't look like Aikido (though some of our classical drills to bear some resemblance to Aikido's training).