My characters look somewhere between 1 (Lore-Friendly) and 2 (The Human Female Meta). I like them to look good and I don’t mind a bit of a shnininess either, but everthing in moderation. Just like in real life.
Alsso, Female Norn look far better than Female Human characters. And Male Charr look awesome, too. I even managed to make my Asura and Sylvari characters look really nice.