Could this work in a fighting game? (character skins, random loot drops)

Yep, exactly. Anything having gameplay bearing should be a non-starter (gems).

Why did you think the customization was the worse par?

SxTK was the worse example of it not only having to pay for them but the fact they hardly did anything. 5% to 15% seriously that why was good value on top of that you had a shitty UI to select them. Not to mention how garbage the rest of the game was either.

Super Dragon Ball Z aka Dragon Ball Chou had customization where you could select character moves and had quite a bit of tournament play. And they had a good lay out to select your edits if you were going to change. Only problem is that you had to rank up like cod to unlock more options on customization.

The only cool idea capcom had was being able to carry around your gem loadout on a usb, now the fact that consoles only have 2 frontal usb ports means that this idea is fucking stupid because where are you going to wire up your pad or stick, who knows. Maybe they figured you’d plug in your sticks, pick your team, unplug your stick, plug in your gems, unplug your gems, plug in your stick.

I take it back, everything about gems sucks, there’s nothing good about 'em

Again that was in Super Dragon Ball Z on the PS2 version or Arcade with player cards or memory cards.

How I would of did the gem selection was to have a grid of 4 by 5 or 5 by 5 telling with a little notification telling what it did when you highlighted a gem. You could use heavy’s or Bumper buttons to switch gem types or use the tabs on above the grid to for it. Let’s not forget the obvious and keep a page number below the grid to and go to another page by scrolling past the left or right most row of gems. So at least 20 (with the 4x5 grid) per page for the hundreds of gems with tabs to show which gem setting your on.

Too lazy to make a graphic on it.