The 'scenarios' are not to be taken as gospel. Each kata (in any art) is meant to teach certain lessons. In the case of these 'scenarios'(at least in MSR/MJER), one part(but by no means the whole deal) of the lesson is learning to move body and sword through confined and or crowded spaces. Probably the most important part of kata study(at least in regards to aquired skills) is breaking free of the kata (after years of conforming to it). It is ridiculous to say that you could only execute a technique if the attack comes in exactly the prescribed manner. Yes, I'm sure that there are people who never learn to "break free" ( I feel like I'm a long way off ), but you could say the same of people practicing any martial art.
Dan, your '4 sides' comments could also be applied to the practicing population of any MA(perhaps save some very small koryu), even Daito ryu.
Just a couple more quick comments:
1. No one(AFAIK) said Iai constituted a full study of weapons.
2. No one (AFAIK) claimed that the techniques have not been altered.
3. "I have never seen or heard of it being resolved" There is nothing to resolve. If you don't like it, don't do it. It's still a free country.
4. With the exception of knowledgeable and objective comments from people like Meik Skoss and Ellis Amdur, Most of the negative criticism comes from people with no background in this art. Take it for what it's worth-"0".
5. The real conflict is within those who feel that they need to continually tell us that our art is "noncombative", "ineffective", "full of affectation", etc, etc.
If you want to be able to judge the art, go study it earnestly for a decade or so.
Regards,
Brian Dunham
MSR SanShinKai