As you said, kata is good for balance, focus, co-ordination etc.
And also as you said, kata is not the best thing for self defense. But in karate and other martial arts that have katas or form, you are usually taught something similar to shadow boxing as well. Kata should not be compared to shadow boxing. They are two different things. As well as improving you mentally and physically, a kata can be something to work on perfecting and performing beautifully, similar to a dance.
"A karate ka for example does many katas yet the techniques they learn from them they would never use in sparring anyways, so why learn these forms?"
This is because most of the techniques taught in kata are too dangerous for any type of sparring (breaking of bones, killing of opponent, etc.), especially light contact sparring.
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"I will be happy if you understand that the essence of Martial Arts is not the strength, not the art, but that which is hidden deep within yourself."
- Grandmaster Gogen Yamaguchi
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