He attributes his power ultimately comes from the universe/kami. When a man who has unquestionably defeated some of the most powerful men attribute his victory comes from God and not due to his own skill/power, he basically has let go of his ego. And in that instance fighting no longer exists in his life.
Ultimately he is not saying I need power to defeat others. He is saying I need not defeat others when they are basically challenging Gods power. Granted he wouldn't have started down this conclusion without having his eyes opened to the world of aiki, but he has transcended that level and not just focused on it as an end to itself.
Regardless, all of us should travel through the exploration of this baser level of aiki. And if it comes from others, the instruction is no less useful. Only we must retain a goal to understand beyond that if we were to really follow the aikido way...
No offense, but I think that's way off. All rose colored glasses aside, he could be immensely egotistical.
Remember the quotation that Dan cited - he specifically said that his power did not come from religion. Also, remember that he specifically discouraged people from studying his religion.
As for taking it to a "higher" level - that kind of thinking is ultimately, I think, misleading, and perpetuates a misunderstanding of where his Aiki came from.
For example, check out this translation of a scroll hanging in one of the most conservative Daito-ryu dojo around - one that I can guarantee was not influenced in any way by Ueshiba: