Hello Ellis,
Is there any information in your book concerning the relationship of either Shigeru Egami or Tadao Okuyama to Noriaki Inoue and the Omoto-kyo? I find it interesting that the only karateka widely rumored to have "transcended" "ordinary" karate training are those who had some association with the Omoto-kyo. And this despite the fact that other karateka of the period (such as Yasuhiro Konishi) did train a bit with Morihei Ueshiba.
Is there something to the Omoto connection, or is this simply a case of mystic asceticism selectively attracting students who are rather more likely to develop a folklore of "internal strength" (even if the physical basis of that folklore is no more remarkable--in principle, if not in form--than more "mainstream" karate)? Of course, I lean toward the latter (why else would anyone write such an awkward sentence?), but it is interesting that the stories don't only come from awestruck students--even Taiji Kase considered Okuyama's technique "the highest."