Hey
Sound of Azure
Well, here's my take on it (funny enough I was thinking about something along the same lines of this today at work

). I always have a specific theme in mind for my games. Recently (well, a couple months ago) I started up my Forgotten Realms game, set in Hlondeth in the Vilhon Reach. I made it clear from the get-go what sort of characters were allowed, what the house rules were, and then we spent an entire session going through and making 3rd level characters. I made sure that I was there right alongside them while they were making them, guiding them, and in the end, we have a diverse and interesting group of PCs.
- Wild Elf Druid from Chondalwoods (using PHBII druid varient)
- Lightfoot Halfling Beguiler from Sembia
- Gold Dwarf Knight from the Smoking Mountains
- Air Genasi (a LA+0 varient) Ranger from Chessenta
- Human Cleric of Kelemvor from the Dragon Coast
- Human Pugilist from Chessenta (using Dr. Awkwards Bruiser class from the boards here)
The Pugilists' character, for example, loves monks (he's a big Dragonball Z fan FYI). But, I don't care for them in a non-oriental campaign, so I offered him that as an alternative, and thus far he loves it since he can go into combat with a d10 for HD and a 1:1 BAB and really get in there more than a monk could. For the elven druid, I offered her solution of the PHBIIs alternate druid, since she's new to the game, because it's easier to keep track of her bonuses in Wildshape
So, I do restrict players options, but I have a great knowledge of the game, and a know a lot about Faerun, so there's a good comprimise in that I can still help them make awesome characters regardless. I think that's if you're a competent DM, the players have a great starting point for their gaming experience
cheers,
--N