I saw someone post about how the facegen made the faces in Oblivion pretty bland compared to Morrowind and on that I agree for the most part. The only significant issue with Morrowind's faces what that you obviously couldn't change their geometry at all in CharGen-however as a modder you could easily modify their textures to for instance insert your face or a celebrity's face onto a particular head mesh. I think an excellent middle ground would be to have various "details" like scars, make-up, freckles, beauty marks, etc and perhaps even allow for different base textures so a PC modder could add a custom face texture if they wanted to.

It would be interesting if they tried to develop some kind of technology to allow the player to map their own face onto their player character-possibly making use of Kinect for the XBox 360 or the Playstation Eye for PS3-adding a sort of basic facial recognition system that could automatically attempt to "mold" the FaceGen to match the player's own facial characteristics while also possibly mapping the player's face as a texture (this may not be necessary since the images it captures could be poorly lit or too low resolution to use-it might be better to just use a combination of preset skin characteristics). I highly doubt there'll be anything like that in the game, but it'd be a cool feature nonetheless.

It'd also be nice to have more types of hair and such, just a greater diversity of things to use to customize your character in general-and this would of course also translate into the game world with a greater diversity of character appearances.

For that matter they should also extend from face generation by making bodies morphable to some extent as well.