They will be a pain if you want to be able to change colors. You can’t apply different materials to the instances so you would have to generate new instanced meshes for every color variation. If you dont limit the variations, to like 10 colors, there might be some issues.
No. Its actually only the first mesh inside a Pawn BP. Every added mesh is inside this pawn, or other pawns that have no connection.
ps. I’m only a Pro in Trial N Error so dont get the wrong impression just because of a floating boat xD