You can absolutely have epic stories and extraordinary characters. But that doesn't have to be at level one before the game has even started. Pacing.
Levelling mechanics are a weak point to base your pacing and character development on in a computer game. In Planescape Torment you start out as a very unusual character, in a very unusual (at least for a game beginning) place, and the very first companion you meet is a floating & talking skull. And yet BG1 never manages to create a story that would be as engaging as that of PST. It has other areas where it does better (such as combat), but not storytelling. At least in my opinion.
