The new character creation allows for you to modify the scale of every individual component of a character (head, torso, legs, hands, feet) as well as modify the offsets in the x, y and z planes.
Therefore if you create custom body components that are vastly different dimensions to the original character format, you can tweak and adjust the scale and offset values to make your characters look awesome.
Here is a video demonstrating the new intro and character creation for v0.16:
There are many additional bug fixes and new features added in v0.16. Please be sure to read the release notes after downloading.
And as always, be sure to post any new bugs you find in the discussion forums here.