No, your correct. The models are in the .dat files, but they need to be exported.
Currently the only options for exporting are Pack3d (.obj format) which works but is problematic with SH4, or S3D 0.5 (.dae format) which only has export support for the time being.
Now I can't say for sure if Blender supports .dae, you might try looking around for a plugin perhaps though.
As for Kashmir, I believe thats just the code name for one of the programs the devs use to create SH3/4.
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