I will admit now that most of my players built their characters without any input from anyone except themselves, it seems. I offered help, guidance, but all of them simply showed up with characters and then we had to sort out the chaos from there.
The big thing for our group, and for me, was that there has to be a chargen summary page. The pages at the end summarizing the twenty questions are decent, but they don't go over the limits or basics (all rings start at 1; nothing higher than 3 during chargen; no one loves you; etc.), so players missed a lot of things which then had to later be corrected.
Oddly (to me) the players fumbled over how EXP works, and how to spend it effectively. Part of this came from inconsistencies in the character advancement table (some of which have been fixed) like Techniques at the wrong rank not being specially marked (as it indicates on page 44 under prerequisites"Advancements that appear in an earlier school rank than their usual prerequisite limitations would allow are marked with special formatting"), and it being unclear whether or not overspening at one rank spilt over into the next (i.e. If I've already spent 14 EXP on Rank 1, and then I rank up my Air Ring for 12 EXP, does 10 of it go to advancing Rank 2? Or is that 10 EXP wasted?).
Of the players who had glaring errors I needed to review, Advantages and Disadvantages were a big issue, which stemmed a lot from terminology more than anything. Advantages and Disadvantages are categorical terms only, and it made people miss the terms like Adversity and Distinction when they were just flipping through (heck, even when rebookmarking the pdf I missed the distinction the first time around). I get why the terms are there, but if it's going to be two unique types of mechanical effects for two different things, and the term "Advantage" is otherwise only there so people don't forget "These are good!" then I think things would be more clear simply removing the term. You have Passions, you have Anxieties, and people don't need a higher category than that to sort things into which mean "Good and Bad" (they'll do that themselves).
Ninjo and Giri are... a thing. Most players picked something, and (for the most part) I just let them go. The interaction of Ninjo and Giri (as written when we did chargen) was far too restrictive, and so I opened it up to things that should conflict, but don't always do so. For example your personal goal might be to protect your secret love, and your duty might be to become a perfect duelist (potentially bad examples, but it was a pair one player wanted to run with) and I thought: That's awesome! Because it offered chances and opportunities for those things to play against each other sometimes, and to work together other times, which is what a good mechanical representation of an otherwise purely roleplaying system should be.
Personally, I have some troubles with most of chargen being laid out for you, but not nearly as much as some folks do (perhaps because I sometimes like to do that sort of thing, like in Iron Kingdoms). People are always going to rebel in an RPG from more freedom to less freedom within the same RPG... Family Line, I'm going to say. Personally, I can see how folks might get lost, and how certain questions might be in a different order, but overall it seems to give the illusion of freedom with the questions, but it ends up being "Heads or tails?" for most everything. That's not inherently bad, but it's worthwhile to consider if that's what you want in a game system.
And, otherwise, that's about it for chargen. There are definitely other bits as relates to play and such, but that's the bulk of feedback directly related to chargen.