[@Takashi]  As pertains to PvP... I believe that 3 is the safest option while 2 would allow for more unexpected challenges.  It might be wise to combine them, having areas that are PvP permitted without consent and requiring consent everywhere else.

EDIT:  Perhaps a creative race or two?  Not just traditional but including hybrids as well.  I am not suggesting human/whatever crosses but rather Inu/Tengu or Kitsune/Oni.  These might be more interesting as rare options for a character.  Also, there's the possibility of elemental or regional spirits and their descendants.  Mountain god's children, etc.