Mostly, yes. Though I don't think Jesse used morphs in his Mutant League. For facial tweaking, like adjusting nose width etc., a good way to handle that is by using morph targets (Maya: blendshapes).
Another technique, which he outlined a bit at the end, is to use texture channels to create masks where the user can adjust the colors of different parts. http://wiki.polycount.com/wiki/ChannelPacking
Blendshapes in a game typically re-use the vertex normals from the base mesh. So you would bake the maps using the start blendshape as your lowpoly target. And just sculpt whatever offsets you want... forehead wrinkles, frown creases, etc.
At least that's how I'd approach it. I've done some game morphing but not exactly for customizable characters. Try some tests and see what you get, refine, rinse, & repeat.
Replies
http://wiki.polycount.com/wiki/SkankerzeroModularCharacterSystem
Another technique, which he outlined a bit at the end, is to use texture channels to create masks where the user can adjust the colors of different parts.
http://wiki.polycount.com/wiki/ChannelPacking
At least that's how I'd approach it. I've done some game morphing but not exactly for customizable characters. Try some tests and see what you get, refine, rinse, & repeat.