I'm afraid your aikido is as unfinished and cluttered as your dojo is, Chris. You're operating in a real fantasy land if you think you can hold a man that way and avoid being cut by either a knife or a sword but it's clear you won't learn. Good luck to you and God have mercy on your students.
That's a bit harsh. However I checked out the video and didn't like what I saw. When someone holds as described it may be hard to turn a knife blade but it makes it easy to escape the hold. Plus if it was a sword---Oh dear!