Clint, the method of grading in Aikido sounds a lot like Jiu Jitsu (the only Japanese martial art in my immediate vicinity). Kata is an important element of Jiu Jitsu, though. It was my kid's least favorite aspect, although I enjoyed it; maybe appreciation for kata develops with age.

Oh and BTW - I did learn Zhan Zhuang Qigong and Ba Duan Jin   
(The Eight Fine Exercises, or the Eight Strands of the Brocade) from a book, almost identical to the pages at the links.