Re: Getting very discouraged, need your help.
I do not know abour your aikido. Mine, tested on the street three times already, works just fine. You say you have trained for 5 years now. This makes you (at worse) 2-3 Kyu. There are lots of things to be met down the pathway, still.
For me the fact that you question your abilities is a very good thing. I wish people did this more often. Yet questioning your abilities is one thing and discarding them altogether is another. Give it some time.
What we practise in the dojo is very different from what we would do out in the street but the basic idea is the same. Most (if not all) techniques give you ample space to apply for instance a "stronger" nickyo, a stronger atemi etc.
Give it some time...