Yeah... I've played some games where it has been done well... but more where it just turned into a competition of who's better friends with owners and therefore gets the better class...
That sucks. And I heard about the scavvy thing too. Where so long as you had a reason, you'd get a bunch of really neat (also unfair) plot abilities. Like a lizard scavvy: "Oh, I'm also half dragon." Plot: "Let's give you +8 strength!"