It's funny, because I don't really remember him cutting the attacker down from the 1935 film. So I watched it again just now, and I can't say I better understand what you are talking about.
He catches most of the strikes and doesn't seem to cut them down. Maybe I don't understand what you mean by "cutting the attackers attack".
Also, on the third point, I was actually surprised after watching the film again at how few atemi he is using. In the book, I know that I missed several of the atemi after watching my video and looking at the book.It's funny in the video he doesn't do all that much atemi.
For cutting, you will not catch live sword? Rather you cut it ? Strike with hand is only representation of weaopn use....This is how I understand it. Atemi is not only with fist or leg.. the way how you enter creats atemi...