Personally, I loathe the whole amnesia approach. It has been SO overdone. KotoR 1, Kotor 2, PST, New Vegas, heck even Bioshock. What bothers me most is that it burdens the player: All the roleplaying I do is completely dependent on some thoughts I have come up with on how my character is like. There are no ties in the actual gameworld that explain (and sometimes enforce) a certain decision. I can change my past and character at the blink of an eye - and that means I have to constantly hold on to the character image I created, there is no other element in the game that helps me with that.
Then - I'm really baffled on how most posters claim there is no freedom of choice with a given background. That is just not true. Anyone of us could just quit her or his job in the real world any day and go on an adventure, say in central Africa. We probably won't do so, because.... But if we did so nevertheless, it would make for a lot more interesting adventure than waking up in central Africa with Amnesia. A king's son can opt to become a hermit against all resistance. A wizard guild member can stay true to his guild or rebel against it.
What I'm trying to say is: A given background does not restrict your choices or roleplaying - it makes them a lot more interesting because of just that background you are making them on (or against).