How much you practice outside of class is up to the individual. Some people get consumed by it and end up spending lots of time. Most of us have lives that need attending to, so we probably don't spend quite as much time as we should. As long as you are dedicated to practicing regularly, less practice outside of class just means slower learning. It's not false, we are actually better than you!
You admittedly have no experience yet feel in a position where you can state that something is a certain way. Interesting. So other than continuing with the posts that are basically littered with loaded questions, do you have any other questions about koryu?
I guess it's fair enough if they don't accept everyone, since a lot of martial arts schools in the past (or maybe most?) were selective about students.
Hatori - If I were you I would forget about koryu or the Bujinkan and you should look into this: http://www.yellowbamboo.net/
You are too kind sir! Do you know how much hard practice we put in to it!?!?! Means a lot to all of us that you appreciate the effort