Heheh, saw that on a thread in the Interplay community forums. Yeah, the female characters (except for mage) look pretty risque when naked. But they're naked... When fully equipped in plate armor, plate leggings, etc. they look damned dangerous. The male warrior is almost totally topless when naked, too... but that's another story.
I think alignment would definitely help DD a lot, but it would also make it too similar to D&D. Maybe a different alignment system should be put into place, like instead of "lawful good" you have the "knighthood" alignment, which would be difficult to obtain. Instead of "chaotic neutral" you have the "selfish bas-tard" alignment, with all the appropriate descriptions therein. Something like that would be interesting.
As for appearances, the more options the better. I always wanted to see wings on my character especially after she attained godhood. I also wanted to see glowing swords, or at least colorful swords like those death knights have. More = better.