Gints,
I would in no way advocate a 'forms' only practice. Forms are a conditioning method. Not merely a physical conditioning. If that's what you want, go get yourself a Tae Bo tape and dance with the music. Forms condition a neuromuscular response. A combination of actions that 'should' respond to something.
Steve Sanders wrote an article on 'brain sight' which basically says when we begin training we perform our techniques very methodically. First A, then B, then C. Perry, Pound, Kick. After a while, we understand that it should be one action, ABC, yet we are still 'thinking' about our actions. Eventually, through continued practice, ABC occurs by natural reaction. We didn't think about it, we just responded.
This comes about through years of practice. I'm not there yet, or maybe I am and don't know it. But I believe that our experience in exercising techniques comes through a balanced regimin of which forms are only a part. I practice forms, dry techniques (no partner), techniques (w/ partner), active sparring, and occassionally what we call a three step drill.
I have a love/hate relationship with the 3 step. I hate 'em but they are very good. The principle is that in a real fight, you won't always be able to execute a perfect technique for the given situation. You may never do that. So an oppenent begins by punching at you. You respond with 3 techniques (or strikes) and stop. You oppenent then responds with 3 techniques. Try to not take down too soon. Continue this exercise until one of you can no longer respond.
You should learn to take advantage of the targets presented to you and respond in an appropriate attack of the exposed targets. One of these days I'll get better at this exercise.
I think the only part of training I feel I am missing and I think is soon being remedied is a more full contact, all out, bust 'em up session. At some point, the heat needs to be turned up and find out just how you respond to a more realistic threat. I need to know just how an opponent is going to 'feel' making realistic threats to my personal being. Throw a real punch and retract it and throw again.
That's probably the most difficult part of training, you certainly don't want to hurt your training partner nor do you want to be hurt but we need to 'get real' in our training at some point. The streets are much less forgiving.
I think our school is on the lookout for body armor so we can do just that kind of training. I'm looking forward to that. I want to test my metal.