The early Ken/mpo systems in Hawaii were measured against brawlers with way less technical skill than that is prevalent today. As early as the 1980's John Hackelmans Hawaiian Kempo dropped the kata and his is system is doing pretty well. But how do you "think" your Ken/mpo systems will fair in Hawaii today?
These are the words of a famous martial artist.
“Self-actualization is the important thing. And my personal message to the people is that I hope that they will search within themselves for honest self-expression.”
Seeing that there're 2 questions here, I'll answer each one seperate.
1) Keep/drop the kata? Really doesn't matter to me. The majority of arts that I've done have kata, so I'm used to them by now.

However, while I do think that there's value in them, ie: being able to extract techs. from them, I do not feel that kata should be the sole determining basis as to whether or not your art will a) be effective and b) whether or not you can fight. The techs. that are in the system and getting into the ring and sparring is, IMO, a good portion of the meat and potatoes.
2) How would my art fair in Hawaii today? Well, thats where my Kenpo came from back then, so I'd say that many of the Ken(m)po/Kaju systems already have alot of respect. However, much has changed from back then to today, meaning that if the same mentality that they had back then was used today, there'd be lawyers camping outside of every Kenpo school in the world. LOL! IMO, I'm all for a hard workout. Thats what the training is about, and it should be tough, there should be contact. That being said, I'm sure there is stuff thats been modified for today.
This is why I feel that people should know what they're getting into before they join up. If they dont feel that they can handle the contact, the training, etc., then perhaps they should find another hobby or accept it.
I'm sure if you compared a Kenpo school in any state to what you'd see in Hawaii, I'm sure there're differences. Never been to Hawaii...hopefully one day....but I just have a feeling that if you weren't prepared to bang, then you're gonna be in for a rude awakening.