Hmm yes that makes sense. What i'm doing so far is using VTF in the PS (not VS) to obtain normals. I think i might move this to VS or simply send in normals with vertex lke you said. Then i use an alphamap with 3 values (2 texture IDs and 1 weight) for the splatting, as apposed to the usual 4 splat weights channel. This gives me more textures to work with but limits me to 2 textures per vertex, which isn't a problem really. I also use detail maps.
Anyway, for the tangents and bitangents, is it better to send them in with the vertex or generate on the GPU? By better i mean performance wise.
@Scouting Ninja, thanks for the visual aid :)