Normal form for deterministic (sub)sequential transducers with letter-by-letter outputs
I'm not sure what your question is. Tell me if I am mistaken.
From what I understand:
Given a subsequential transducer, you can easily transform it into your canonical form by replacing every transition $(q,a)\to (p,v)$ into a transition reading $a$ and producing nothing followed by a sequence of transitions reading nothing and producing $v$ one letter at a time.

On the other hand, given such a transducer with $\epsilon$ transitions where all loop read some letter, you can compress the finite $\epsilon$-paths to get to a classical sequential transducer.