Recently a friend invited me to play some of the latest releases, and while they did not exactly blow my mind gameplay-wise I was amazed at the graphical style that Capcom had achieved.
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I will look into this form of texturing, as I feel it brings an organic beauty to 3d models that most models lack - my own models of Lucy I felt were too clean, and her style didn't allow much time for detailed work. Hand painting her textures using Sai Paint Tool or Corel Painter could give her the detail that the model desperately lacks and hopefully make her appear a little bit more alive.
I will not be using Mudbox or Photoshop's 3d paint tools however, as they are absolutely awful and a real let down considering how amazing both of the programs are at other aspects.