I don't think holding the cane like in your video to bait the attacker works. It only can work if the attacker tries to reach for the stick. If not, you really lock into holding the cane.
The same movement in that video that I showed also works for people trying to rush in.
As someone tries to rush in like you state then do the exact same movement including that short drop. Here's what happens, provided that your hands are not at the end of the cane.
Phase one. - The person rushes in to grab your body
Phase two - As they come in. You should drop your stance and raise the cane like in the video as my son demonstrated. This moves the target area that they were trying to grab out of range and it pops the arms upward. So There's a bunch of things going on in Phase 2, but main. You are moving the target that they are trying to grab by lowering your body and by raising the cane. which lifts the arms. Because of how the cane move s upward, it will strike the bone and yes it does hurt. Felt it first hand.
Phase three: Because of what you did in Phase two, your opponent should feel like they are falling on emptiness. Like trying to lean against a wall that isn't there. They shouldn't be stable at this point. They also shouldn't be able to pull their arms down because of how the cane strikes their arms. At this point you should be under their arms and their ribs should be exposed. That's when that last strike with your arms extended comes into play.
What if scenarios:
What if you raise the cane too soon? Still follow through. By dropping your stance your stance you have still moved the target out of the way. Now your cane is above your attackers arms. Extend you arms forward with explosive power and that cane should hit him right across the face. Which will disrupt the grab attempt giving you time to reposition out of grappling range so you can strike with the cane.
What if you raise the cane too late? There's an answer for that as well. But to be honest learn the first steps first., the movement my son is doing. You have to be good at this first thing so you can be good at the things to follow.
Last night, my grand daughter played and swing the stick at me, we were withing 3ft(close distance). My first thinking is rush and punch her!!! I don't think of grabbing the cane at all,
You probably didn't think about grabbing the cane because you were thinking about the cane smashing you in the face. Once you know that something can happen you will be less likely to do it because you know what the possibilities are. But it doesn't mean your other thoughts were invalid, because you are right not everyone is going to go for the cane., Which is why you always have to think. Well what if they don't go to grab the cane. In this case the same movement protects you against 3 possibilities. as explained above.
Again, to be honest, learn the first steps first. Learn the movement my son is doing. You have to be good at this first thing so you can be good at the things to follow. Sometimes trying to learn too much at once or learn too fast creates more harm than good to your learning.
I could land quite a few punches just like that. I don't even care to try to grab the cane!!
Your grand daughter doesn't know how to fight with a cane or a staff. so I wouldn't go on that feeling too much to define the weaknesses of using the cane, walking stick, or staff. However, What you feel may be what an attacker feels. and that felling will help you get a better understanding for the types of attacks you may get. This will help you improve your training.
At that close distance, I rather fight bare handed, cane seems to be a liability.
It will be a liability if you don't know how to use that cane to fight close range which is what I've been saying for a while now. Using a cane for a long distance is an easier concept to understand. Using it in close range, not so much. That's the weakness of the cane, walking stick, staff that Dirty Dog and I were talking about earlier on.
I wouldn't suggest dropping the cane. It's better to learn to use it in close range than to just abandon it for the sake of grappling. The reason why is because dropping the cane gives your opponent to option to push you away, pick up your cane and then beat you with your own cane. Keep in mind that you brought a self-defense cane to a fight, so it' not going to break if your opponent hits you with it.
If you want learn to fight with a cane, then understand that there's long range and close range cane fighting techniques that you'll need to develop. But most importantly don't rush your training.
If you have to spend 3 months only training that movement that my son does then that's what you'll have to do. The reason for the length of time training that one movement is so you can do it without thinking. You'll have to accept the reality that there's no short path to learning how to fight. The other thing that you need to train is the footwork, because none of this stuff will work without the footwork. Footwork is the most important thing.