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Armor Sets - The toolset provides dozens of different creatures and races, each with multiple variations of faces, genders, and hair. In addition to this, clothing and armor is extremely customizable. You can choose from several different types and variations of armor, helms, boots, gloves, belts, and cloaks. Beyond that, you can add 22 different armor attachments, each with multiple variations. And, as with many other things, you can tint them all as you see fit. This allows you to create very unique appearances for your non-player characters. Best of all, you can save any armor sets as an item and give them to other characters to wear.
They've also posted a new video featuring commentary from lead environment artist Tim Donley, so you may want to check that out as well.