I think that approach works fine for D&D, at least if you start at 1st level. Characters really are at their beginning.@MichaelSomething and Kzach on restarting using similar characters in old school gaming:
Not trying to derail this thread or open a can of worms, but have to make a quick and (hopefully) constructive comment based on my experience in "old school" gaming. In my old groups, the characters we played developed uniqueness through playing - they didn't really bring it in with them pre-game. Usually "He's a fighter from X" was enough pre-play history and flavor. If they lived long enough, THEN we started fleshing them out more, usually using their actual in-game experiences as inspiration. So yeah, you might play a fighter with stats a,b,c,d,e,f and a slightly different name three times in a row, but you didn't bother with an elaborate history. Now, rich histories eventually became part of the game for us, but like I said, usually not until it was clear the poor fool would live past level one.
I suppose my point is that we weren't playing Barrick, then Carrick, then Darrick, then Eric, then Farrick, all with the same elaborate personal history. Honestly, he's a level one guy, how varied and interesting could his personal history possibly be? Haha.
We cared about characters, but usually it was about he ones that had actually done something interesting, I guess. Until then, they were just cannon fodder.
We have run a lot of adventure path and published modules so far, and personal background is also mostly irrelevant to them. DMs can try to build it into the adventure, but the idea is to have something that's fast and easy to run, not something you have to modify.@Mustrum
I can see where you're coming from on Shadowrun (or in any game where you're starting with more elaborate abilities).
As a DM, I can also totally sympathize with your hooks comment - it was MUCH easier for me to create interesting plot hooks if my players provided me with rich character histories (careful players usually would, reckless ones wouldn't, go figure!), but I suppose now we're talking more about play style. Usually (NOT ALWAYS), our old school games (not saying all old school games) were less about story and more about "beating" a tough dungeon, so my players didn't really expect elaborate plots and story arcs and whatnot (especially at low level).
@Mudstrum
Careful players usually would, reckless ones wouldn't, go figure!
What I also hoped for was maybe backgrounds which allowed you to craft something... (If you were a blacksmith, you can forge armor given time and money)

(Dungeons & Dragons)
Rulebook featuring "high magic" options, including a host of new spells.