I agree with you here. I doubt we're going to get body types into the game, but better armor and such is totally doable I feel.

I rather liked how Dragon Age: Inquisition handled it. Each character had basically two variations on their looks based on the type of armor they were wearing, and youwere able to alter the color of the armor bits while crafting. So every character looked unique and iconic, while also getting some variety. And for special, unique armor sets, those always looked the same on any character. I think that's a decent way to approach it in BG3. That way you never have to worry about characters looking generic. They all get to keep their own unique flavor.