In heavily combat oriented dungeon crawlers, I much prefer a custom party. In a heavily story-based game, static (or at least only mildly customizable) characters are needed.

So in short, I'd be happy regardless of the decision. I do like the design choice, and the way it is presented. Being able to alter the character to an extent may help cure some of the woes I notice with purely static pre-defined PC's in many games I've played.