The way I see it, we can go a couple of ways with this, character-
wise.
We can have swappable body parts, like heads and torsos to generate a
lot of townspeople (a lot of games will do this).
Pros:
* We can generate a lot of models for less effort
* We can more easily populate our world
Cons:
* After a while, NPCs begin to lose individuality
* We may not have the time or tech to support a large number of NPCs
(modeling, texture swaps, animations, rigging, VO, AI, all considered)
* More AI work to make them not just stand around looking bland
Or, we can just use fewer NPCs, but make them all unique
Pros:
* Players will remember the NPCs, what they represent, who they are
* If we only have a few, this may possibly mean less work
* More Adventure-game-like; fewer, but more meaningful interactions
Cons:
* Could also mean more work, depending on how many we want, since they
will be unique and we can't reuse their assets
* Harder to simulate a believable larger world
* Need for more voice work and modeling
I'm inclined to go with choice 2, simply because most adventure games
I've played have stressed the quality of NPCs over quantity. I would
prefer to have fewer NPCs that are well written and memorable, than a
plethora of clones *cough* Oblivion *cough* (don't get me wrong, it's
a great game but I really have to strain my brain to remember any NPC
that really stood out as unique, save Sean Bean since he's awesome).