Batto is an actual cutting sword that is used in practice to cut, at a predetermined angle, bamboo or straw, which has been immersed in water for several days. This is similar to Iai-Do in that form is practiced without actual cutting. This technique practices from, accuracy and timing to increase skip and strength.
The use of the sword was originally meant for killing people, but after the 14th century, the Shogun Ieyusu Tokugawa created Edo Era. Since his control of Japan, peace was restored, so therefore the use of the sword changed from killing opponents to saving people, protecting self, and it was used for the purpose of self-discipline and mind and body exercise. That way it changed from a killing sword to a living sword.
After World War II, Kendo and Iai-Do changed to more of a sport which led to a few problems, since the philosophy behind the training is that, without the true feeling of the sport, it’s no different than just playing baseball or running. I think the way of the sword is much more valuable than that. The way of the sword is clearly understood as "Live or Die;" therefore the art of the true cutting is the center of Kendo and Iai-Do. Bamboo fighting or no-partners and cutting-air form of Iai-Do cannot get the true feeling of cutting; you can only get this experience from Batto-Jutsu.