Definately need more diverse options. Fallout 3's creation system was alot better than Oblivions but not by much. It's just the way that every race and gender starts with the same face shape, and even when randomising, they all look the same. It's hard to tell one NPC from the other half the time.

as for building your own, it took me nearly half an hour to make a decent looking character -- and that was female. The only normal looking male characters i've had ended up looking like will smith if he was a redguard or gerard butler if imperial or breton. Elves... Elves just looked like they had their head in a clamp. It was really frustrating too, since I refuse to use the countless... countless anime themes beauty mods. If I wanted my character to look like an effeminate possibly transixual 13 year old boy, I'd play Final Fantasy.