Bad. Really bad.
Character creation is a much a player's decision as it is a DM's decision. It must be a cooperative thing. Otherwise you might end up with things like: " I am the Wizardking's heir, I start with a staff of the archmagi, a robe of the archmagi and an amulet of health." kind of sillyness. Or having evil PCs alongside good aligned pc. This is a receipe for disaster and PCs infighting. I would never encourage such a behavior at my table. Characters are build with the DM and the players. They all decide which characters will be made and who will play them. At session "0" we talk about the kind of group they want, the orientation and the campaign type that will be played (only the general theme).