Yes to some extent. I think the player should be able to choose gender, name, hair color, and clothing/armor for the lord, an E rank of a weapon of choice, and the ability to add (not subtract) stat bases (limited).
Possible problems:
1. Specialized Weapons: Weapons that only the lord can wield would be almost impossible if you choose what the lord's weapon is.
2. Classes: The lord needs his own class.
3. Plot: The script for the default lord wouldn't match the customized lord's personality. Mugs would have to be customizable along with the battle sprite.
It's a good idea, but it would be hard to do flawless.