First of all, we are all familiar with the "Options > Multiplayer > Game Mode> Offline/Invite Only/Friends/Public" setting in the main menu, correct?
No. Most people just play the game. Some go through the options beforehand, but many don't. Some people just check the options when they need to change something (controls or volume, etc) but otherwise just want to play, and a button to do what they want is much easier than a list of instructions on how to change settings to be able to do what they want.
Which, fortunately, is why we have a multiplayer options button sitting right on the UI next to the minimap, again making the "new game> singleplayer/multiplayer" choice pretty redundant.
Personally, I would be surprised if most people did not head to options first to customize graphic settings and/or tweak keybinds before launching the game.
The issue seems to arise from the number of different pathways which can lead to the same end result. (I don't think I really explained the thinking behind my earlier question.)
The first question when I start a game should be "Do I want a multiplayer game?"
If the answer is NO, I should go straight to character creation, set up both characters, then begin playing. (If I change my mind later then either the software will let me make the necessary arrangements - I haven't actually tried multiplayer so I don't know for sure. If it doesn't allow this then that is my problem.)
If the answer is YES, then the type of multiplayer needs to be set up with character creation arrangement (host player or both), then play can start.
That way the option to have two people creating characters is only offered when it is relevant - for multiplayer games.