I was recently told not to use the terms "Aiki Toho Iai" or "Aikido Toho Iai" in any promotional material and to replace them with the word "Iaido"
This (if accurate) would just be the Hombu's desire not to give Nishio Sensei's form of Iaido the official sanction of the Aikikai. In other words, by doing Aiki Toho Iai, you aren't now doing Aikikai Foundation weapons or the Aikikai does not now have Iaido a part of it's official curriculum. This is a natural response and hardly a ban on weapons. I think in the past, the Aikikai has had an informal discussion of sorts denying that weapons practice is inherently necessary to Aikido training. That is something the current Doshu has said publicly but again, it is an official line of sorts attempting to defend a perimeter of definition. My own Shihan, who is known for his intense loyalty to the Ueshiba family, conducts 1/2 of all his seminar teaching and training in weapons.