I'd like to offer my opinion on this. I believe the gunblade does have a barrel, which (on the image below) is located adjacent to the blade and right after the bullet revolver case. I've labeled the important points on the image just in case.
Being able to shoot into the flesh would be a good idea. By the time the trigger would be pulled, the blade would already have cut into an animal's skin, and a bullet with a dispersal pattern like a shotgun would cause serious damage to a beast's internal systems. I can see how the gunblade would theoretically work in that manner, but how would you compensate for misfire unless you really knew your gunblade well. Take a look at Squall's slash. He would have to reach (pretty far IMO. the handle of the gunblade and the trigger is far from his index finger) and fire before hitting the enemy, so that as the blade cuts through, the bullet will have already left the barrel. If you pull the trigger too early, the bullet may end up flying into the sky or even the ground.
Plus the revolver case seems to have only enough holes for six shots. How does he do Lion Heart then, which averages 20 shots? Then again, he may not necessarily be pulling the trigger then. Then again, it is a world where magic and technology mix. Pulse Ammo comes from Energy Crystals, which come from Enuyoles, which come from the moon. Perhaps the world of FF8 has different properties?
If you really want to make it easy to use, the gunblade's blade would have to be pretty light. I imagine the Lionheart is because I think the blade is transparent and stuff and IMO the Lionheart is a lightsaber gunblade. If that's the case, the weapon would practically be no different from a two handed pistol. I dunno, IMO this weapon is difficult to use, maybe even inefficient, but it can be created.
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