If I was at a new table and that idea was enforced by the DM, I would automatically assume he/she was a control freak.
Not to say if someone I play with a lot proposed the idea I wouldn't consider it. I actually do the exact same thing when players ask to take the leadership feat.
It's the kind of thing that's not inherently a terrible idea, but it would send up a major red flag about the DM if it was his go-to method. I also think going through character creation is an important part of teaching new players the game. This way seems like the DM is hiding the system from players so he can control them better.