The best Way is like i Mentioned Befor. Passive skill Tree. or Items which increase physical values with penalties.
that People can choose in any mode. you should be able to customize your characters potential and work on its weak points
some of those values woud be : Attack range dodge Stun endurance, Hp, Guardmode guard recovery and so on...


Example Samurai fraction:

There should be 3 Types Of Weapon
3 Types of Armor

Weapon Long Range

Long Odachi (Only Nobushi)Mixed: Increase Damage by 20% 10% Attack Range Heavies are slower but faintable into lights 2. followup heavy is Hyperarmor. 10% More chipdamage
O KAtana Assassine : Increase damage by 5% 5% Attack Range Heavies are a bit faster 2. followup is unblockable. Normal chipdamage
Odachi (only Kensei) Vanguard : Increase damage by 15% 10%% Attack Range Heavies are normal 1. Heavy Unblocable 2. followup hyperarmor 5% More chipdamage

Weapon Midrange:

Nodachi Vanguard: Increase damage by 10% 10% Attackrange Heavies are faster 2. follow up Hyperarmor Normal Chipdamage
Katana(only Orochi) Assassine: Increase damage by 20% Normal Attackrange Heavies are Faster 2. Follow up faibtable into light 10% More Chipdamage
Tachi Mixed: Increase damage by 10% 5% Attack range Heavies are Normal 1. Heavy Unblokcable 2. followup hyperarmor 5% More chipdamage

Weapon Close Range;
Vanguard and Mixed O Katana : Increase damage by 5% 5% Attack range Lights are faster 3. followup heavy unblockable. Cant guardbreak while feint. Normal chipdamage
Wakizashi Assassine Increase damage by 5% no Attackrange lights are faster 3. followup bleed no gb while feint. no chipdamage.
Ninjato (only shinobi) Assassine: Increase damageby 20% no Attackrange Lights are faster 2. followup Bleed. no gb while feint normal chipdamage



ARMOR

Armor
Vanguard Armor : More Hp, Slower dodge, ( Faster guard recovery after dodge but no parry possible) Damage reduce 10% no Reflex Guard Shoulderbash Shove Kick have less impact.
Assassine Armor: Less Hp Faster Dodge ( Slower guard recovery reflex parry possible) Damage reduce - 5% Reflex Guard
Mixed Armor: Less Hp Normal Dodge (Normal Guard recovery no reflex guard) Damage reduce +5% Reflex and Vanguard Guard on stance ( not dodge)

What you Think ?