That could work now that I think of it.
And if you don't like it there simply is a "Unknown" option.
Exactly, it would be fully optional like the "10 questions" you had in Daggerfall and Morrowind only a lot more detailed, otherwise you can simply set most stats yourself like you want them, more mechanical but works too.
With simply having a number of drop down choices you can have millions of variables ending up with different stats, attributes, skills, relations, immunities, strengths and weaknesses.
Take this example, even if you'd just have 20 "slots" each giving you 20 choices, that alone gives you 8000 possible combinations. Now take into account that their relation towards each other matters as well it (I think at least if my math is right) over 3000000 possible outcomes if not more. Your start out character would never twice be the same unless you chose EXACTLY the same past as before, and even then there can be some random factors that play into it too. For example choosing you spent a lot of time in Black Marsh in your past could mean you already contracted some diseases and are more immune to them now while your health could be a bit attacked, but which diseases you contracted and how much they affected you can vary from time to time.
That way it would really give you millions of start out characters even with variable you wouldn't even think off.