1. Cosmetic slots are something I don't really agree with. Dying the armor different colors would be neat, but that's about it. Your character looks like a peasant because it's low level. It might as well actually be a peasant. Also, I don't know about you, but I doubt many peasants could afford a full suit of leather armor, let alone metal armor like plate, scalemail, or chainmail.
2. Possibly. There are plenty of other helmets around, but of course a leather helmet on top of a chainmail vest looks a bit mismatched. Just wait until you get the metal helmets. They fit better. Hiding helmets is something I like to do generally, though, but when you're in battle, you don't care if you look pretty; you want to be protected. Wear the ugly helmet and save your noggin.
3. More options for character customization is something I totally agree with. It would serve the game well to allow us to make fat, skinny, tall, short, muscular, and scrawny characters, rather than the single model for each race/sex combo.