Earlier quoted context omitted.
Tensor products only describe the separable (i.e., unentangled) states.
As I understand it, that is only true when dealing with density matrices. For example, |0>⊗|0> + |1>⊗|1> is entangled and has tensor products. I think that Xcelerate is correct in saying that all combinations of the basis vectors form the basis of the multi-particle Hilbert space, as a single-particle wavefunction is just a vector/ket.
But I'm possibly just misunderstanding what you're saying.