Myself, I like both ideas...

But, what if we keep the simple basic shape...But, allow people to modify slightly, (say we have the basic shape(s) of a body, but if someone were creating for example a superhero character, they could add a cape outline, funky boots, etc, etc...).

However, I do like the option of just a normal comp, and sticking to the theme of "zelda" style characters. Thinking about the possibilities people could create...
We've still got the option of restricting the size of the characters created. We could also say people have to create a series of views, (face forward, face right, face left, jumping...etc)...Option of animated sprites as well...

Actually, from a personal point of view, I like this one better...