My greatest fear was, and to a lesser extent still is the Avatars. I would be more satisfied with true to life proportions, and yet greater fanciful elements. However the ability to create a disfigured Avatar is a positive step towards self expression. I am seriously not interested in creating a virtual doppelganger.
I am still disappointed that I will have to create one of these abominations, but if I have to I like the fact that I can vent my frustrations through digital mutilation. Hopefully in time Microsoft will expand it to allow for a far greater range of digital persona.