That's pretty clever! Overall I hope they could make it an option but in order to be compatible with displacement maps smoothly crossing all UVs that need to be visible, the body parts must be intact. 

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@Nicole-PandorasBox When you ask about "sending normals in displacement character" do you mean using normals as displacement? 
If you try to do this without modifying the normal map that is set as displacement it will crack because there seems to be issues with Reallusion's normal maps, in particular if they are layered because it appears that pixel shift on axis is not being calculated/compensated. So if you use normal maps as displacement you will have to mirror it left & right or use the clone brush to make all adjoining edges have the same pixel tone.
There should be no reason why your iavatar character file isn't working unless you somehow altered the textures. As a precaution save out your material then if the avatar doesn't show it working, load the material to see if it works.

If you mean having a character in CC3 and sending it over to iClone, for me it works fine. Some links brought me back here and I realized I didn't tag you in the reply.. 



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