A few things stand out to me here.
I'm not really going to go too much into the "how much religion should be in a Martial Arts class thing, but there are a few questions I would have about exactly what it is you feel is being taught there (or not).
I can't stress enough again that he was never a part of the Bujinkan org, when he started training we had already started taking the steps to seperate from the Bujinkan. So some of your arguments about him being dis-heartend or feeling rippped off because of the tranistion is a mute point. Please also take to heart that Soke Hatsumi gave us his blessing to take the steps to move away from the Bujinkan. Also remember that the Bujinkan is a recognized religion.
As noted, the Bujinkan has become a Religious Organisation, not a religion itself. The concept of religion is rather different to the Western concept (this contrast between the Japanese approach and a more Westeren one will come into most of this post, by the way), but if you want a Western equivalent to compare it to, think of things like the Salvation Army, they are a charity organisation based around Christian ideals, but they are not a branch of Christianity itself.
As far as demon worship goes, anyone who trains in the 9 ryu of the Bujinkan are well aware of the fact that channeling demonic entities is a foundimental part of the higher techniques. In fact in most of Hatsumi's teachings, books, videos ect he openly discusses how he invites demons in to him to perform certain techniques and infact encourages and teaches us to do the same. Keep in mind I have trained at the Hombu dojo in Japan and seen this first hand as has anyone else who frequents there.
This entire section tells me that you have very little understanding of Japanese religious concepts, and are looking more at the idea that anything not fitting exactly the concepts put forth by your form of Christianity is considered "evil", or "heretical". Now, while that is fine, you may realise that this exact form of rhetoric may be exactly what Shinobi Teikatsu was railing against.
To begin with, if you are teaching a Japanese martial art, expect it to have Japanese concepts, not Western ones. And in order to teach the art itself, those aspects are there as part of the transmission of the art. Now, that doesn't mean that you need to believe in them, or attribute them any form of value, but they give context to a large number of other aspects. For instance, you teach Gyokko Ryu, yeah? You may or may not be aware, but the reason the thumbs are extended upwards in Shito Ken/Boshi Ken in that school (and carried over into aspects of Koto Ryu and Togakure Ryu) is because it is a way of ensuring your spiritual energy (your Ki) is being transmitted to Heaven (note: NOT a Christian Heaven concept here), creating a direct link between the Earth (that you're standing on), Man (yourself), and Heaven (where the energy, taken from the Earth [the world around you, to put it in Shinto terms], it sent through yourself, to Heaven). This is part of why the school was recategorised as Ten Chi Jin 10 years ago by Hatsumi Sensei.
Now, are you going to continue teaching Gyokko Ryu kamae with that Shinto aspect inherrent in the actual forms themselves (as that gives the reason and context for the kamae), or are you going to change the art to remove that aspect (which would mean you are no longer teaching Gyokko Ryu)? There is no way to really teach the Japanese arts without understanding the Japanese context itself. When I teach Gyokko Ryu, for instance, I can point out why the Shito Ken is a major aspect of the Kamae of the Ryu... that doesn't mean that I necessarily believe it, just that I understand the context. Whether or not I believe it doesn't matter.
I haven't seen a single reference to Hatsumi "inviting Demons" to inhabit himself, what I have come across is him discussing the spirit of the schools themselves, closer to ancestor worship than demon worship there. You really seem to have missed the cultural aspects of such things, and being an Evangelistic Christian group, I'm not really that surprised, honestly. But you should realise that such a definate, black and white way of seeing things is far from the way many others would, and to try for a moment to see how someone else may read your words there.
Oh, and there's a major issue with your understanding of the Kukishin name as well, by the way. The second character is not necessarily "Demon", the "Ki" pronunciation can also be "Kami", making some branches Kukamishin Ryu, and that refers to "Spirits", or "powerful beings" rather than the Western concept of Demons. The character of "Oni" is actually a mis-use, so you know.
I have not nor have we ever had any short comings or a falling out with the Bujinkan org since the break. We are permitted by Soke to teach the 9 ryu of Budo Taijutsu. We are an open dojo and encourage all to check us out and invite all to consider training. We DO NOT descriminate others in their religious beliefs or followings, we simply replaced Shinto and Buddhism with Christian values. We are a highly accredited school with students world wide and in several law enforcement agencies, special ops and so on...
Out of interest, you make a few references to having permission to teach the 9 Ryu... really? That's quite different to having permission to continue teaching Budo Taijutsu, you know. And all 9? Including Gyokushin Ryu, Kumogakure Ryu, and Gikan Ryu? That would put you in a unique postion there....
Simply replacing Shinto and Buddhist aspects with Christian ones doesn't really work, as the very ideas are quite different, and give very different contexts. And I'm not sure how the organisations and personnel you instruct outside of the dojo reflects on what happens inside the dojo. I'm rarely impressed by such resumes, honestly, I know how easy it can be to put such a list together.
