Once I'm done, you should be able to play as any character you want, against any character you want. (There'll probably only be one-on-one battles at launch, though.) I'll try to write at least a few fun match endings before the site goes live, so there are surprises to discover.

As for nuts magically reappearing, well, that's pretty much unavoidable given the way the site works -- wouldn't be much fun if you could only use a male character once or twice :P But I am hoping to expand on things like Challenge Mode, where the character stays consistent battle to battle until the whole series is finished. Again, we'll see how far I get before launch :)