[quote=@Ember16]
For me they remove some of draw of truly delving into a character. 
[/quote]

Personally I tend to agree. When I started my RP I drew up a very minimal outline for required bios and use them only as reference sheets, so I can remember names and relevant details. But the histories were optional. They're also familiar and a good starting place for ideas, but if I was playing an RP game with just personal friends, I wouldn't bother with them. They're a bit petty and cumbersome. 

All characters, regardless of well laid plans, will evolve based on the story they're in.

Add.: On the note of too much information, there is a certain degree of merit to discouraging players who wish to put forth minimum effort in your RP. You don't want [i]everyone[/i] to want to join if everyone wouldn't match up to your standards. Me personally, I don't join anything unless it looks challenging or well thought-out. You'll know the GM is less likely to be fickle.

It's also possible to get swept up in detailing the world instead of the story. I used to RP with a guy who would just create vivid worlds to the point of obsession and start a new RP every few weeks or months. However his RPs suffered from a lack of plot-worthy material and aimlessness. You can't expect to be able to involve ANY of the world information in the story. It should be there just in case it ever becomes relevant to current events or OOC questions about lore.

In your place, I would keep the doc handy, but the information would be private (though leaving it accessible as an option your players could be good too, if anyone wants to go the mega detailed route). If you think about how this information is presented to the reader of a novel, all of it is introduced gradually so that it can be easily learned and understood.

I've had the most success in RPs if I world-build as I go. Start out with a rough framework and then make it up as I go along, based on ideas generated by the RP, what I need to move the story along, and what the players contribute. But there are different styles and I don't see any problem with this, as long as you don't [i]require[/i] anyone to read all of it.

There are some players, like Frettzo, who might like to do so of his own volition. So having that available as an option is still pretty cool.