If the practical effectiveness of what you're doing is not part of the criteria that you use to evaluate your training, then you aren't doing budo. It is that simple.
Using the practice as physical, mental, and spiritual discipline is great but the practical effectiveness of what you're doing must be a large part of the practice of budo.
Noro-sensei in France started his own organization called "Ki no Michi" that is a system of exercise, movement therapy, spiritual developement, etc. I call it "pairs yoga" and it is great for what they intend to achieve. It is not budo.
The founder of aikido specifically meant for the art he started to be budo. I think each person practicing this art should look deeply into their own nature and decide what they want to do and then DO it. Don't mix the two or think you're doing one when you're really doing the other.