The level that Dan is talking about is one in which your time frame is slower than the person with aiki/internal skills. Your body simply cannot process the information overload quick enough to be able to offer any kind of effective response.
Maybe, but unless we are all in the room together and show what each other knows, we will never fully agree or know what the other is describing. Proof is in the pudding as they say!
I don't see myself ever grabbing anyone like that so that point is moot. The bottom line is that an automatic reflex is the fastest thing you can do. Fortunately for me our randori system teaches that very effectively. You should always think that nothing ever works. That way you adapt to the situation.
I also don't know exactly what Dan is teaching and have never seen any videos or demos from him but the internal arts are nothing new. I use it in my daily life.
For example, I used to compete throwing knives and can easily throw a 1 pound knife over 90 feet. It's all physics and I use my entire body like a whip. I see others that can't throw more than 40 feet max. They have no connection with their body, mind, breathing etc. and use mostly arm strength and power.