Eh, I'm not entirely one-sided on this but I feel in a lot of cases live portraits can look really bad. It's a lot harder to ruin 2D character portraits. I suppose the one major draw-back of 2D portraits is keeping your portrait and character in-sync if the game allow for a lot of character appearance customization.
Since they went with only a few base heads, they could have just done it in 2D and colored them differently. Each head with most hair styles and then just recolor them based on the skin color and hair color selected respectively. Wouldn't take long, wouldn't take much space and would make for an indefinetly better approach. In fact, I hope that's the first mod to come out.
I've just checked, I spent 4.3 hours already in the game and dind't went any further than the first battle (which is roughly 30 seconds into the game). xD That's how long I spent with character creation so far. haha