Some interesting stuff here...
Sting said....." the human mind is unable to register a blade as a threat". i know he is talking in the context of a "heightened experience" event such at the gathering, but REALLY?? Surely this is the problem?! Your training has not prepared you adequately and now you are probably dead.
Obviously not seeing the blade AT ALL means you don't register it as a threat, but a live blade in the hand of an aggressor standing in front of you? if you don't act as though this is a threat, well i think you need some help before testing your "skills".
Next thing, If the fight always ends at a clinch with both parties holding blades, now they are probably both "dead" or both severely "injured". it shows a mindset that has "killing" as it's only focus, or at least a lack of imagination as to what might be possible. it's a place to start, but surely there is more?
I was talking with a training partner who is very knowledgeable about boxing, who after retiring from the military still trains and spars all the time. He pointed out that 100 years ago or so, boxing was not a particulary subtle sport, with both parties hitting at eachother without much technique. over the decades an evolution happened with counter punching, footwork and evasion becoming more and more important. He thinks that this progression will also happen in MMA, and FMA fights, and i hope he is right.
Everyone is concerned with "realism" in blade sparring/fighting, and IMHO this has to encompass a wide field of responses. Sting is quite derogatory about those "knife dancers" who never enter, and though i understand his point that there is skill in creating an opening and going for it, i also think that as a natural reaction, this is ok at a beginning level. if the aggressor is not committed to taking you out and cannot find an opening, maybe backing off is a fine end to the fight?
This is also why i like san86's idea of training both ends of the equation because they don't necessarily occur in the same interaction. Is it suitable as a format for the gathering? i don't know, and this leads me to a question...
If the gathering is a place to gain "higher consciousness through harder contact" then perhaps blade fighting is not suitable for this as it is probably better described as "higher consciousness through as little contact as possible"!!!?
Maestro Sonny repeated more often than not "just don't get hit". Please note that this can mean anything from not being there in the first place, to both backing away slowly, to inflicting non life threatening injury, to taking your opponent out ASAP. I take his words very seriously.
Understanding which of these responses is appropriate because of who is standing in front of you and the situation that you are in, all play into blade fighting BECAUSE they are lethal weapons, closer to guns perhaps than sticks.....so again, are we training to prevail, or to die?