I didnt think the characters were ugly at all, in fact I thought they looked better than most games. A lot of games give you full control which often means you gotta hunt for the good looking characters amidst an ocean of ridiculously goofy looking characters.
This game restricted your ability modify appearance enough that it didn't really seem possible to make really bad appearances. I'd like more options, like hair and such, but like face design is fine for me.
I mean some people like making absolute goblin looking humans with hyper exaggerated features, and to them like, more power to them I say. Just not something I seek out as a perk myself.
Facial hair is rough, but rough in that way that almost every game with a character creator is rough, so I'm not gonna get on their case specifically over it.