Well I like this idea. Only problem I can think of is the animation. But all they have to do is remove a part of each model so I guess it wouldn't be hard.
But some characters like buu, cell, and piccolo would be able to grow their arm back.
Also you could still be able to shoot beams, but your pl is just cut in half. Except for the attacks that don't require 2 arms.
Also, if someone with a very high pl melees you, your arm/leg can be dislocated and be broken. Not cut off, just twisted. (Like Android 17 or was it 18 did to Vegeta. You'd also hear a cracking sound.