My approach for almost any applications consist out of "What archetype/skillset could compliment the current cast" and then "Which of these options do I feel like playing?" Before I start on a sheet, I create a quick (mental) bullet-list of what is at the core of a character anyway, so the application is just making prose outta that.
There's only one difference to competition and that is that I delay my brainstorm a little. It only takes a few days to figure out a few applicants that will get the spot for sure, simply by virtue of having no competitors. These people and the GM character, are now the cast I adjust to. Other than that short waiting period... It changes absolutely nothing.
SpiritDancer wrote:Do you find that this method is useful and successful, or does it add a lot more work to the character creation process than what is necessary?
I honestly think it's kind of dumb. I don't mind participating in it because, as mentioned beforehand, it changes little to nothing about my process. However, if I were GM'ing... I wouldn't accept characters I think don't fit the world or think are poorly written anyway, regardless of whether I made players compete for spots or not. As long as a certain threshold is met, it really becomes more about staying power than anything for a roleplay to be fun and successful and how good you are at writing a pitch isn't an indicator for staying power.
Then again, I'm also not the kind of person that builds RP's around specific roles. 'cause if you base your shit around roles, soon as a person drops, you have a problem you need to fix. If every character is easily replaceable, you don't. That doesn't mean player characters aren't integral to the plot, but their impact is determined more by their actions than the part they are a princess or whatever.
So. Yeah.