Hey Brian,
Good point and I agree. However, I think it is a good drill with some tangible benefits. I know when we do chalk drills you can hit the other guy but that of course is not real either as his stab/cut does not do the damage that a real blade would do. Still it does allow for timing, locking and seeking control. Yet in the end it is just a drill. Similar to full contact stick fighting with rattan which allows you to work on your speed, timing, contact, etc. but is not the same as getting hit with hard wood like Kamagong, hickory, etc. So the practitioner must always realize that any drill, sparring, etc. is not quite the same as a real encounter but they can help you some!