On this day,this is pretty much done with sliders as in Oblivion or Mount&Blade. Theoretically it sounds good since every NPC would be created the same way,everyone's face being different than eachother.
However,in Oblivion it felt like everyone looked the same.Seriously,make everyone bald and one color,and let's see you recognize your favourite NPC by looking at the face.
In Morrowind,we had presets and you could find guys having exactly have the same face as you of course,and take a photo.Still,at least you could guess who was who even though they were one color,bald and naked.
So,what do you think is the way to go?
Are the presets the way to go even though there is a chance that you'll encounter your twin?
How should the sliders be so that they actually create differences -without creating the ugliest thing on Nirn-?
Or third option -I never used character creation so it should be removed anyway?-