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Except it's not useless. Just because you can steal an item doesn't mean you should. If the item is unusable, there's no point in having it.
Then I wouldn't bother stealing that item, or breaking it for that matter.
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Also, the Fencer you get has an ungodly high TEC when you get him, and can easily max within a few battlefields. Milanor is an if-if situation since his max untampered-with TEC stat is 40.
But you get to use Milanor beginning at BF01, therefore it's actually quite hard to not get an untampered TEC stat because of the amount of chances you can get MVP. As you said, if the item is unusable, there's no point in having it, but if it's useable, that means there's a point having it. Item Break destroys the item held which means you can't use the item. The only reason I can think of in using Item Break is to remove stat bonuses / effects on that unit. But you could always just steal the item for yourself during the battle. This removes the stat bonuses and effects on that enemy unit, and also allows you to use that item later for yourself.
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But, if you want a different example, let's go with Milanor and Kylier.
No one is going to say using Kylier is pointless when you have Milanor, since she can fly. But Milanor has high stats, good effects, some of the best possible equipment, and can steal.
That example is not valid as Kylier isn't a permanent unit, I'm talking about the units which can actually level up. She's always popping in and out. Also, she has fixed stats during the battlefield. Her ability to fly is both good and bad depending on the situation.
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How about Nietzsche and Durant?
I hate Durant, but he is definitely useful. In BF35 the only way to get the pick up item is with him, because he can cross over enemies, whether they're invincible or not. He's also the only permanent big unit you ever get, and big units have an advantage over small units. But Nietzsche, as you said, is great geographically. Not to mention her godly LUK, and how she can equip just about all the Morale restoring items.
I didn't pick up that item in BF35, what was it anyway? I didn't know about big units have an advantage against smaller units. Someone should mention these things to me! =( However, because of big units having only 3 instead of the 6 during skirmishes, if you get criticaled, it's pretty much over. What I'm trying to say is, having two decently levelled spear users is pointless, but that's just the way I play it.
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But you say Hunters and Assassins are overpowered?
They both do have high TEC, but... Assassins are crippled when it comes to level twenty ATK (30) and GEN (22), Hunters have bad LUK and ATK (30 each). Couple that with them both being unable to counter, and you've got rather unappealing classes.
At level 20 though, that'd mean you'd have picked up quite a few MVPs which would boost those below average stats significantly, as well as the great items end game. But then again, any unit with full stats would demolish everything in its path.
Even though they can't counter, that also applies to the enemy on the Hunter / Assassin's initiating attack which is very, very advantageous. What I usually do is send in Yggdra to initiate the union, and because of her All Ace ability, I can use a card which my Hunter / Assassin can use such as Thunderbolt. After the skirmishes are done, I can move my bow units out of Yggdra's union formation range to prevent them from being on the receiving end of an initiating attack.
I also noticed something, the higher your TEC, the higher your starting aggression bar is. With Thunderbolt and max TEC, the aggression bar was at max. The Hunter / Assassin could equip the bow which increases effectiveness of lightning based attacks which would make Thunderbolt deal fatal damage, or overkill on units weak to lightning. What makes thunderbolt very useful is that the only unit that is immune to it are fencers, and you don't see that many during the end game. Of course, if the Ace condition is satisified, any other unit in the union can use the elemental attack card skills but I don't know the other items which increase the effectiveness of the other elements. With this, the Hunter / Assassin could kill off any unit that doesn't have elemental / lightning immunity, even on the receiving end of an initiating attack providing it isn't a critical hit.