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This is a touchy topic. The concept is known (in Chinese terminology) as kong jin. I'm not familiar with the exact translation of the term but it means something to the effect of "transmission of internal energy over distance." It's very controversial in the traditional martial arts world, and beyond that world it's considered impossible due to an utter lack of reputable scientific evidence. Let's look at the questions.

-Why would anyone use a move that has such a high chance to fail?

I believe in the possibility of kong jin as an actual phenomenon. With adequate focus and careful technique one can project their qi. I was taught by putting out a candle with a simple finger movement. I could manage almost a foot away under perfect conditions. My sifu could do almost two feet. That's it. And would you feel it if him or I tried to do it to you? Hell no. If there is force there, it's so light that its imperceptible to the human nervous system. So the simple answer is that you wouldn't use kong jin in an actual combat situation. Kong jin is more of a teaching tool designed to help a person learn to move their qi and focus its projection for healing and understanding, not combat. George Dillman and his adherents might be on to something but probably not.

-Why are martial artists or anyone of an athletic background more immune to a deadly art?

This is a theoretical answer that assumes Dillman's technique actually is valid. Presuming that the technique actually utilizes the attackers qi in a fashion capable of disrupting the other person's body, we can assume a direct physiological interaction of some sort. A martial artist or an athlete is by default more aware of the state of their body as opposed to the average Joe Sixpack. Therefore, it is logical to assume that they would counteract the qi technique, either consciously or subconsciously and be rendered immune to it.

-Is this genuine Bullshido of a McDojo chain?

Anyone who claims that they can use "kong jin" or "dim mak" or "death touch" or the bloody "hadoken" is full of it. In a legitimate martial usage, qi can be used at best to disrupt an opponent's meridians and flows and that requires contact as well as careful and detailed study of human anatomy. I believe in that usage because I've been on the wrong end of it before. But there isn't a human alive (anymore) that can project their qi strongly enough to use it as an immediate combat weapon. There are internal artists who can project sufficiently to cause long term disruption (bagua masters are notorious for it, in fact) but as for throwing a long-range knockout punch... well, it doesn't happen. Dillman is a well-known charlatan who is better at brainwashing others than the martial arts. For purposes of this discussion, what you experienced is 100% Grade-A Fresh-From-The-McDojo Bullshido.

I read an article in Black Belt once about the "no-touch KO" ... for quiet, it means "empty force" in Chinese. In Japanese it is called toate-jitsu (translated to fighting method of striking from a distance). Dillman was featured ...

Now as for the subject itself ... I personally don't believe it ... but being skeptical to this is kind of understandable ...

But then again I watched this and well yeah ...
Kiai Master vs MMA

Non believers. Aren't affected. By the no touch knockout.

I'm not sure if I should break out laughing or crying. I wonder how these charlatans convince new people that their technique is real then, since you cannot truly believe in something you haven't experienced. A following of the easily-duped, apparently who have a disturbing propensity for suckering others in.

I'm not surprised to see an MMA fighter do what that one did. Most of the MMA people I've met are surprisingly well-versed in the actual properties of qi and its abilities. Either the gentleman fighter in that video did not believe (still not sure what emotion to feel about that) or knew precisely what qi could and could not do. I do pity the "kiai master" however. Clearly he actually believed that his technique worked and had the desired effect on others. Brutal way to have it disproved for him.

As one progresses in the martial arts to the advanced level termed "master", a person feels less and less the need to exert his dominance over others. The desire to show off and push others martially simply is no longer necessary and thus they do not bother. The purity of the art becomes such that they see no need for that. Basically, at a certain level of enlightenment a "master" of any style should no longer see a reason to compete. The Martial Art becomes purely a method of defense and self-discovery and demonstration serves only as a distraction to this. A good student realizes this and has no need of histrionics on the part of his teacher, accepting the teaching as it is rather than as an outlandish display.

This system works because while the older masters grow enlightened and move beyond the more basic needs of the art, younger masters are still demonstrating and showing the public the art. Thus, new students are attracted while the old ones can pursue the purity of the arts.

So guys share any Experiences you had.

have you ever encountered or taken place in a mcdojo.

what were some things you noticed about them compared to your current discipline?
-forms
-training methods.
-the self defense
-price difference if any at all.
-all out discipline of the style or class

(note this can also fall under a gym or even an MMA training ground)

Now that's my type of gym ... the smell of sweat in the air ... humid ... no bullshit ... those are the types of gyms where really "hungry" athletes go to improve ... where guys make their start ... and they credit them when they make the big times ... gotta love those no bullshit gyms ...

i noticed a few schools like that and even a few places that call themselves an MMA facility but turns out to be just a gym.