In the Developer's Backyard, what really stuck out to me is that Daisuke's official info on Happy Chaos says he lacks experience in martial arts or hand-to-hand combat. While it is somewhat true, doesn't having vast knowledge from the Backyard and the omniscience of I-No's god powers at least give him the ability to know how to fight in close quarters? He somewhat in some instances in gameplay knows how to use Crescent Moon with perfect precision.
In a lot of ways this is a case of "the body knows, but the brain doesn't know".
Physical memory and reflexes can effectively cover for most anything the mind lacks.
Here's another example:
Answer has an Eidetic memory. He can verbally repeat the exact location and index information of a book if he's seen it only once.
However, he can't use his memory and instincts the same way Chipp Zanuff can. In that sense, Chipp has a stronger sense of precognizant prediction in his kit of abilities.
Bedman once stated that Chipp's reflexes could out-run Bedman's ability to teleport and even mind-read, to the point where he would have to completely re-compose his Magic Theory.
Chipp's speed combined with his ability to read and predict others' intentions, means he has a step above any opponent he goes up against. In fact the only real reason he lost to Bedman the first time around is because Bedman could read his mind.
Happy Chaos is a naturally gifted genius... so his intelligence allows him access and the ability to process a great deal of information at any given time, much like Answer's Eidetic Memory.
Having access to the Backyard, as well as the Tome of Origin, means that he has a firm grasp of how Magic works on a fundamental level.
Magic, however... doesn't simply apply to spells or Elements: in this case, it applies to real world physics and spatial awareness. The link between the Backyard's defining information and the "reality" of this world.
Here's another example:
Axl Low has the exact same powers as I-No... so in-theory, he could "pull the moon" closer to the Earth just the same way I-No did.
The only things that keep Axl from being able to do that right now, are understanding the physics involved and the Magic that could cancel out the danger involved.
Axl could still "instinctively" mimic what I-No did if he so wished... it's just an issue of him "figuring out" on a basic level how she did what she did.
So, again, it really boils down to "knowing how" versus "doing".
For some, "doing" is easier than "knowing how"... like in Chipp's pre-cognizance example.
For others, "knowing how" is already established... it's just a matter of actually "doing", like in Happy Chaos' case.
Applying what you know in to physical memory and training that physical memory to a point where the things you "do" can be done without actually "thinking" about them, is actually a major goal in the case of fighting games.
Of course "not thinking" (auto-pilot) isn't necessarily a good thing, since you can sometimes do things out of bad habit or reflex and make mistakes, but having a certain level of awareness in any given situation helps improve how any given situation is handled.
Precise and Organized Knowledge. Precognitive Instinct. Practiced infallible Skill. Situational and Spatial Awareness.
All of these are needed to achieve a near-perfect or even "Godlike" response to virtually any situation.
