Ok I actually quite like this system if there were a few things that were implemented to it.

First of all, it would be really sweet if the faces you chose were recorded somewhere, maybe you could pick different races and mix them, and you would basically have a family tree of your character recorded. Of course the race you pick for you PC would be the one which overrides the genetics of the others (and the one you get racial traits and bonuses from) you could make a unique back story of your characters family tree. This would be cool for those who are using the same family throughout the games.

And I would prefer that at the end, when you have your PC's face, you have sliders to refine certain features. But other than that I think it is a really creative way to handle character creation.