Yes, the game directs the new textures to the default model. As long as you are using new textures for the game's default models, you don't even need a models folder. Barabbah, of course, is giving you great technical advice for any deeper changes you may wish to make.
Yeah I was able to change and remove the armor's I didn't like from the MODEL folder as was mentioned before with the tips. I am now wondering how to alter the Armors that only exist in the Materials folder to remove the Armors I don't like and use another Armor in the same folder and just copy that. The only way I saw to do this was using the MODEL directory which I did, but now just wanting to do it for those that don't have anything in the MODEL directory. Hope that clears it up...
So I looked into the .vpk archives and found 1 base armor0 for the MODEL directory for all the clans in the *002.vpk archive. But there wasn't any other armor's I could extract, just the armors for the MATERIAL folder (base textures I guess). Again, the help I got from Barabbah helped with my Malkavian armor issue because he showed me how to alter the files names in the MODEL directory which I had a model for the Malkavian. The Gangel is just a separate clan I wish to alter (nothing to do with merging with the Malkavian skins or anything). I just don't like one of the downloaded armor's I got in the download (which only contained a MATERIALS folder). This means I can't use the same method Barabbah helped me with changing the Malk armor previously as that was done in the MODEL folder. Hope that clears up the confusion a bit...
OK, got it. If all you want is the rest of the Gangrel's model files, just keep looking in the other vpks. pack005, for example, has files for the armor2 textures and model.