So the actual character customization I finished last night actually and is similar to Earthbound but a bit added on top where the equipment is Instrument, Top, Bottom, Accessory, Module (things like a wah pedal) instead of just Shirt, Weapon and Accessory. But the stuff I found is actually customization of the Music Store itself.
Think about the shop item placement in Recettear and that's kind of close.
Essentially at the start of each day, you'll be able to customize the entire store with posters, albums, instruments, accessories, etc, to attract different people to the store which opens up different character arcs that blend into the subconscious world.
And as the game progresses, different floors of the music store open up so you have to split your party to manage each floor to choose how you spend your time in the music store phase with each person/customer.
Basically, a simplified "level editor" but instead of the whole place, just different "sockets" in the store.
I can't wait to dig into it more after the weekend and tie it to the event system I already have in place.