Obviously it would be frustrating as hell for the characters involved, but you're playing a game, and that game will have challenges in it (otherwise it would suck). The Yuffie sidequest is involved and interesting, with multiple components and bonuses. I always had fun doing it.
And no, Yuffie is not the best character to use in battle. She's right around fifth on my depth chart (behind Cloud, Cid, Tifa, and Red XIII). I would put her ahead of Cait Sith, Vincent, and Aerith, though. And yes, it is just an "game mechanic" which makes her very advantageous to have, but you can say that about pretty much everything. The Morph materia would be borderline useless (or at least very frustrating) without her.







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