Indeed, events are removed from the character description as soon as the game starts, are quickly forgotten, and the character background is rewritten entirely.
Besides, saying you got strength, for example, from guarding this or living there doesn't make sense when you quickly realise IG that you are a wimp anyway; all your stats are ridiculously low compared to the average citizen.
Yes, the creation process only consists of browsing a long, heteroclite list of events, reading way too long and precise texts for the sole purpose of guessing how it will affect your figures. These events should at least be short, vague, and flexible in interpretation.
The system fails to promote RP, and even to keep people in setting, as many just will ignore their forced choices altogether. It only succeeds in giving you an approximate character, one you have to guess what he actually can and cannot do until you validate it.
It'd be best to first choose your stats and skills as you see fit, then to proceed with a series of events that help you create your background and explain how you became who you are; without affecting your chosen figures. Vague events such as: birth, where you lived, your family size, love affairs, joys and fears, religion, etc. Grouped by themes, not like the big soup it currently is.
Ah, and please early mention which stat a skill uses: How silly is it to learn a magic way that is based on your lowest stat?