Hey, do you refer to the new version, or the Java version? Basically the game stores all definitions in the "definitions.db" database file (for the new version, it's located in Data/StreamingAssets/). It can be opened with an SQLite editor (e.g. DB Browser). It contains a table called "items" which contains all item definitions, including the path to the model.
In the Java version, you could basically just replace the model with a new model (but it has to use JMonkey's .j3o file format). For the new version, however, it's a bit more tricky, because the data is stored in a Unity "asset bundle". It's not impossible, but you can't just replace an individual model file in that bundle, instead you would have to extract and repack the whole asset bundle.
However, it's our intention to make this a bit easier in the near future, so you could load prefabs from a separate asset bundle easily. That way you could pack your custom model in a separate asset bundle and place this bundle in the game folder, then provide the path to that asset in the definitions file (and the game would load it from the new bundle automatically, instead of having to modify existing bundles) 
Yes, this is correct Once custom asset bundle loading is implemented (basically there isn't too much work involved to get that ready), you could indeed easily replace a sword with a baguette (it would then still behave like a sword) and you could even adjust the amount of damage the baguette deals per hit (this is defined in the definitions.db) 
We'll provide more information about that in the future^^
thats mint! thanks very much
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