Abandoning form: the paradox of the "shrinking" martial art

Here's something I was told when I first started training in martial arts: You start with "no form" - ie. natural movement. However this movement is not necessarily productive and is almost certainly not efficient. You then learn " form "; this involves a basic, formal, structured type of movement being "imposed" upon you. Once you have absorbed or "internalised" this "form" you abandon it - and your movements become natural again. "Abandoning form" and "shrinking your art" seem to go hand in hand. By "shrinking your art" I'm referring to making your formal blocks/deflections etc. smaller, using finer and more efficient angles etc. until the basic "form" you were taught becomes almost unrecognisable. The " formality " of your technique (ie. the structure dictated by katas/forms etc.) disappears and in its place is just the smallest movement necessary to effect the principle or es...