In regards to your first question: Do I prefer character-driven stories to plot-driven stories?
I am clearly drawn toward character-driven stories. In fact, action-based stories (punches thrown, objects exploding, dialog that serves only to set up the next scene, villains getting their just desserts) bore me to no end. Really.
As a writer, I just see the other writer(s) creating a machine that is intended to get from Plot Point A to B to C to D, making X amount of money along the way. Macguffins, love interests, comic relief, catastrophic setbacks followed by the hero(es) rising up and triumphing over evil. Bores me to tears. I could count the number of Marvel movies I've seen on one hand, because if you've seen one, you've seen them all. If I can see your plot machinations at work--your calculated attempts to make me laugh, cry, despair, and cheer on cue--then I don't think you have much of a story. And most likely, you don't have any real characters either, just roles that espouse certain popular and/or necessary attitudes.
I am more drawn to character-driven stories, because a major reason why I want to watch a movie / read a book is empathy. I've enjoyed some stories that have a pretty good character arcs, but no "plot" in the way most people would understand the word. Which is to say: the character undergoes a personally significant change, while superficially not much happens.
But character and plot are not mutually exclusive concepts; the best stories are perhaps the ones where the characters drive the plots. To this end, here are some of my favorite novels/movies/both so far this century:
- The Gangs of New York (Scorsese flick, one of his best)
- Catch Me if You Can (it's amazing what Spielberg can do when he isn't preoccupied with CGI trickery)
- Atonement (both the novel and the movie are equally good)
- Oryx and Crake (first entry in a dystopian trilogy by Margaret Atwood, better known at the moment for The Handmaid's Tale (of which I was a fan before anyone ever heard of Hulu or Brett Kavanaugh))
- The Wake of Forgiveness (2010 novel by a first-time writer, Bruce Machart; nine years later, I need to read this one again)
- Salvage the Bones (by Jesmyn Ward, about black people in Louisiana riding out Hurricane Katrina--not an experience I would otherwise know much about; as someone who loves pit bulls, I was hooked by the premise and stayed for the exceptional writing)
- All the Living (by CE Morgan; this is not a book I'd expect anyone here to know about, and not a single thing actually happens)
- Anything by the Cohen brothers, but No Country for Old Men and True Grit are high on my list of favorite movies
- These more recent movies also made an impression, but ask me again in the 2020s what I still think of them: Blade Runner 2049, Prometheus, Skyfall, Christopher Nolan's last two Dark Knight movies, The Revenant, Gravity.
Now for Part 2 of your question: How do I design characters?
Well first off, I don't "design" them per se. But dealing with characters is a big part of why I'm here, because writing fiction is somewhat new to me.
For my Orion stories, there are only a handful of characters I had strong opinions about long before I started to write. I knew that Captain Siggo liked to sing odd little ditties. I knew that Dionysya Andrade was middle-aged, had a grown son, was a good mentor, but was trying to stretch herself by moving into a command position. Captain Ynthramanni is always cool and in control, because you don't get to command a starship otherwise; I know little about his background (and I say as much in SotGP) but I love writing his dialog, because he knows what he wants and how to get it. Chief Dansmith is a plain-spoken guy from the Midwest; he has a robust personality with strong opinions; he is charismatic, popular among the crew, with a conservative streak that shows up now and then, as well as the occasional desire to be alone in his workroom.
The other characters I didn't know as much about, so I simply wrote their dialog and literally let them flesh themselves out. Lt. Ceta Hun-Spruk is mousish at first, but there are some topics that she is personally close to, and those get the better of her. Dr. Wildon turned out to be the practical adventurer, always looking to get off the ship, but never willing to do anything to get himself killed. Sisny Quabiss is quiet and observant, learning instead of speaking. Commander Diston was modeled after some random stranger I walked by at work one day: tall, broad-shouldered, clearly ex-military; but now my age, wearing a button-up shirt and tie, heading to a job where he's probably at a computer for most of the day.
So after writing their scenes and getting a sense of who these people were, I went back to the beginning and gave them all a stronger introduction, primarily in the mision briefing scene.
Then there was Lt. Skaxa of Tyuu, who was nameless in one of the MoGM endings, but almost got written into SotGP late in the process when I realized how much potential she has. Then wisdom prevailed, and I realized I didn't need her quite yet. Therefore she has only a background role in SotGP, with plans for a larger part in Orion III... although I'm not sure in what capacity yet.
In a decision that may frustrate some readers and go unnoticed by others, I don't dwell on physical descriptions, especially ones regarding skin/eye/hair color. First off, I can only assume that a thousand years from now, race won't have the same significance that it does now, and so the characters will be less preoccupied with who is black, yellow, brown, red, or white; they might, however, take notice of the Tyuuans, because that is significant to the history of the world in which they're living. And if I'm going to write: "And you notice that Lt. Hun-Spruk has brown hair and green eyes," that just begs the question why are you noticing this? Do you have a crush on her, or something? (She's married, by the way.)
So in terms of visual descriptions, I try to just give the overall impression. The hair color, eye color, and weight of a character doesn't tell me squat about who they are. If I do mention one of those aspects, it better be a key detail.
But whether or not my approach to any of this is actually any good remains to be seen. I knew that I'd have to be patient in terms of feedback on SotGP, partly because there are two concurrent contests right now, and partly because I wrote the story to be a long, narrative maze. And there are characters who appear late in that story that required a bit of risk to write for; I really don't know how readers will respond to them, and that's one reason why I'm holding off on Orion III for the moment.