For me the crux of all of this is in the bolded section. The students have to learn to be able to react like they do.
In that regard, it's not too far from the Dillman stuff, but I do believe there is a core or very hard reality in what Nishino is doing. I can't begin to imagine what the crazy-looking students are doing, or why, but I did see some people who looked both very strong and very centered. But what do you see in an ordinary aikido school? In some cases, you don't even see one person who looks like he really has any idea about aikido. In some, you see two or three and the rest are just going through motions. It's rare to see a school where very individual is both technically skilled and mentally focused.
But it does appear to me that Nishino and several of his students have some awesome power. It would be interesting to meet him and see.
One other point: ballet is one of the most grueling physical pursuits you can find. Ever check out the legs on Mikhail Baryshnikhov? I think O Sensei and Tohei would have been very impressed by his abilities at 50... But I agree that we need to know more.
Best to you.