yes it is limiting but it still allows 16 models per character. if a name fits for a character and the player doesnt mind the damage formula. it works out. im not saying this is a godly find. im simply saying its possible to expand a bit. these characters have less than 16 weapons and here are the weapons that pull their model from spots than can be used for them.
red 14
aeris 11
cid 14
yuffie 14
cait sith 13
vincent 13
12 yoshiyuki, work glove,rocket punch, behemoth horn, flayer, rising sun, starlight phone, outsider
13 apocalypse, power soul, enemy launcher, spring gun clip, spirit lance, oritsuru, hp shout death penalty
14 heaven's cloud, master fist, pile banger, limited moon, venus gospel, conformer,
15 ragnarok, god's hand, max ray
16 ultima weapon, premium heart, missing score