1. Magic: Preference is dark fantasy; the players don't wield magic but there are supernatural beings/gods out there.

2. I prefer human with maybe a light sprinkle of slight variation.

3. Custom.

3.1
-'soft' fantasy (magic and races but little magic)
-alternate history

4.1 - Depends on the style and setting of the RP; factions generally work better for smaller universes but when the world is larger faction systems can become meaningless and lost in the scale of the RP.

4.2 - welcome; I always love the creation process and generally find it as a chance to make something I want myself.

4.3 - depends on the application and the people involved.

5.1 - maybe not the rules part but traits/flaws can often come in handy due to an ability to estabilish and solidify the strengths and weaknesses of each nation.

5.2 - freeform majority as it allows players to exert far more authority over their nations, plan their responses far better and conduct battles better. However in the case of arguments it requires a good GM to decide on this; maybe even a team of GMs to ensure a range of opinions are considered and it's not seen an one person's decision.

6. Last resort I'd say; if no agreement can be reached and the GMs find themselves split then a dice can be useful.