Ouch, I admire the work you are willing to put into it.
Wouldn't it "simplify" the process if people who wanted a breed-change, had to remain logged off for eg. a certain amount of time, while the characters get "deleted" and all IP and items transfered?
I remember the early character creation process, where we would run around as sexless "drones". Would it be possible to reuse that part?
I know this pretty much would be "Make a new character at whatever level you want".