I'm sure that the Israeli's have probably invested in Simunitions by now.
And a firearm loaded with blanks and you have eye protection on, is basically only a threat to your ears, unless the muzzle is pressed against your flesh, which is what killed a Hollywood Actor in the mid-1980's. The Show was called, "Cover-up" if I remember correctly. What I do remember correctly is, his name was John Erik Hexum and he put a live Smith & Wesson M29 .44 Magnum revolver to his head with a blank in it, pressing it to his temple and fired the weapon. The weapon discharged, a blank round, propelling a piece of the skull into his brain.
A firearm loaded with blanks at arm's length is still not a razor sharp edged weapon or a loaded handgun.
I just don't think that it is even remotely a necessity any longer to do this. The key words here are, "I don't think." Hey! If you want to do it, that is great! You want the rush, that's cool too. Maybe it is just me.
What bothers me is this, and it bothers me about sparring as well...the live blade is apparently being used to offset the nasty habit people have in sparring of not taking a weapon seriously.
Sparring is something that has been debated on here before. It is good to teach reflexes, but without the proper mindset, it becomes duelling, or an unrealistic game of "tag, you're it!"
I have seen people spar with knives and they have done things they would never do on the street because the risk was not there that they would get laid open, now, the flip side to that is, you temper that with using live blades occasionally? O.K., if you want to...
I guess what I am doing at this time in my own development is creating my own thing, and that is defending yourself with steel and not duelling. If the guy is not going to try to put steel on me, I am not going to dance, I am going to not take my eyes off of him and back out slow. If the guy feeds me, I am going to have to deal with that, or if there are multiples, I am going to have to know how to attack as well...but a lot of what gets discussed is pure knife fighting alright...and I guess I am drifting more to fighting with knives as opposed to "knife fighting." There is a difference.