A) Faceclaims? Real life? Anime? Digital? Hand drawn? None?
[indent]Absolutely needed, however, images should fit the setting/be agreed upon. Think of it as the one anime girl in an adventuring party of burly guys in armor. Try to keep it to one type.[/indent]

B) Color codes?
[indent]Also absolutely needed. Makes it easier to pinpoint dialogue rather than trying to find it in a wall of white text.[/indent]

C) What's the 'right amount' of images?
[indent]Depends on the type of roleplay. Usually just one image is fine, but your character has equipment or something, you could slap another image or two in there.[/indent]

D) Freeform or GM provided code?
[indent]Personally, I don't care how a sheet is formatted (unless it is stupidly heavy on images), though uniformity can be nice. Depends on how I'm feeling at the time; sometimes I prefer uniformity, sometimes I don't mind my players being fancy with their sheets.[/indent]

E) Things that should be be included/excluded?
[indent]Certain categories should be included or excluded depending on the roleplay on hand. Categories such as "Sexuality" and "Likes & Dislikes" do not belong in every sheet, however, unless the roleplay was (for example) Slice of Life. I also saw someone constantly include a section for their character's children (even if they didn't have them) among other questionable sections, and by then you have to wonder if it is even necessary.[/indent]

[b]Edit:[/b] Seems like I missed a few questions.

1a) What is your opinion on character sheets?
[indent]100% needed. Basically what [@Lmpkio] said. Also helps you weed out the power gamers/questionable characters during the application process before having it blow up in your face mid-RP.[/indent]

2a) What is your character creation process? Is character creation just all together overrated?
[indent]I don't think it is overrated, though it can be tedious. Usually I just slap on some music (either appropriate to the setting or something I like) and have at it. I hardly have trouble coming up with ideas, so after glancing the RP background and other characters (if any), I start typing away, which tends to be even easier for me if I already have a face claim in mind. My computer is, in all honesty, just a big archive for face claims that aren't RL face claims.[/indent]