Okay, yes there are a lot of problems with the faces/attractiveness levels and so on.

That being said, here are some of the things I've done to mitigate things.

1-uncheck the thing that lets you use "all" colors for eyes/skin/hair (it is buggy and doesn't work for some options, but it does make things interesting). Skin color (and in some cases lip color as a side effect) can really change how someone looks.

2-Take a seriously look at the makeup options - weird can be interesting and interesting can substitute for lovely/handsome.

3-Take another look at the tattoo options; there are a couple of rather largish tattoos that I think enhance in general - there are others that would serve to disguise.

4-Play around, and when you are getting frustrated, change gender or race to come at things from another angle. Explore.

5-Change profession/class. Even if you aren't going to "stay there", some of the armor makes a HUGE difference in how the character looks.

and in the immortal words of Mystery Science Theater 3000:

"Just repeat to yourself 'it's just a show [game]'
I should really just relax!"