First, let me say that I have been practicing shaolin-do for a year and a half now. In my area, there is a ju-jitsu school, a tkd school, and shaolin-do school. I am a member of the ju-jitsu for 5 months, and shaolin for 14 months. Sure, there are things that I don't buy into about the lineage of the school, but frankly it doesn't matter to me as long as I enjoy what we do. I know I will never be a UFC champion, but that doesn't matter to me.
As for the teaching of the forms, my instructor does a (in my opinion) good job of showing applications to what we learn.