I see huge similarities between elements of systema and aikido, systema and kung fu with the odd angle punches and strikes.
Initially people see similarities with the arts they are most familiar. Basically our personal filter selects what it understands. From my experience the longer one trains in Systema and the more one understands Systema the fewer similarities they see with their previous art. This is from personal experience and discussing this topic with several Systemaists that attained high ranks/experience in other arts.
Does systema use this for demo only and use full strength strikes in reality?
Please explain what a full strength strike entails? Systema goes for efficiency and effectiveness. What most folks consider 'full strength' I consider inefficient and weak. Example: Someone punches at 'full strength' but their body structure is such that 40% of the potential power of the strike never leaves their own body, their tension is such that 40% of the potential power reflects off the target back into the striker, and finally their choice of punch placement is so poor that it is unlikely to affect the enemy's structure even at full power. Hence the 'full power' strike imparts only 20% power at the wrong place. Call me lazy but I prefer to learn to be efficient so my 30% power strike imparts all of the power/energy into the intended target, thereby making it 50% more effective than the 'full power' strike. The above is only an example but it is an example I have seen, and demonstrated, many times with 'full power' strikers. Results may vary.

Oh, and as for the soft looking Systema strikes please come feel them and report back.
Also are these areas where nerve junctions etc are present or does one set up points in a similar vain to the likes of Dillman etc?
My exposure to Dillman is limited but no I would not say there is a similarity with his work.
As for the generation of ki, does one require breathing exercises before taking the strikes?
No, there is not breathing exercises BEFORE taking strikes. Learning to breathe WHILE taking strikes is important. Although Vladimir once told me that the first year he trained with Mikhail, Mikhail did not mention anything about breathing and the students had to learn to deal with strikes simply through movement. When he finally mentioned breathing it got much easier.
As for all of the dodging and weaving between multiple attackers and using leverage of sorts to manipulate them. Is this for demo or does one practice this full speed?
Practice at any speed you like. It is good to vary the speeds during training. Slow speed is for learning. Fast speed is for testing what you know or what you think you know. I will say that the more attackers there are in a drill the more amp'ed up the drill becomes even at slow speeds, as long as everyone training remains HONEST. The idea is to challenge the student but to do so in such a way so the student has the opportunity to learn.
It seems like an art that would take a long time to become proficient at to even be able to defend yourself at a basic level using the techniques I saw.
I understand where you are coming from, unfortunately your view is based on what you know, not what you saw. (See comments above about personal filters.) It is unlikely that you saw a single 'technique' in any of the clips you watched, as Systema does not train techniques. Systema uses a drill based training methodology that encourages creative and spontaneous movement and problem solving that meet the current situation and allow instant adaptation to a constantly changing environment. While that is a mouthful and impossible to truly understand until you train for awhile, it is the key to why the Systema learning curve is so steep. Note: results can vary.
Mark J.