The problem with that is that for kata bunkai to work in a continuous way it often relies on strikes to elicit a 'predictive' response. To an extent that can work on the ground but it is more likely to be relying on strength to apply a technique where in the standing environment body movement can often achieve what physical force cannot. I'll put myself in the basket, 'Yet to be Convinced'.
The only two man kata I have seen is choreographed and normally requires the two participants to be roughly the same size. What that means is that the kata actually become drills. I don't have a problem with drills but I almost never use them. To my mind if you were to perform a two man kata then it should work with only one of the participants knowing the kata. That then becomes continuous bunkai.
I like the drill but it really isn't my idea of kata. A kata for me would start from a common position such as the guard or the mount and work on scenarios from both partners' perspective. I don't know enough of grappling to provide an example but what I would be looking for would be a logical sequence that begins with one move which would be stopped but that that stoppage would expose another opportunity that if stopped would lead to the next. It would assume that each technique would work if allowed so the kata requires the technique to be stopped. What that means is that as you apply a technique, you are applying it with the prior knowledge of how it can be countered. When that counter occurs you are the ready to apply the next technique and so on.
