I am going to disagree with you, here, Dodge.
You are reading, "its foes," incorrectly. Both Ki's are Range: Self, therefore, only apply to the Channeler - not to other models.
That said, my next statement is pure conjecture (mixed witha slice of opinion): I think that this is a typo based upon Second Edition where a model could strike back at models when attacked. In UWZ, a model may only attack, ever, while activated. In Second Edition, a model could attack in CC every single time it was attacked by another model in CC with it.
Now, back to our regularly scheduled discussion. Play it as it reads unless FAQ'd, later.