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SOME master psionics can be really powerful, especially if they just spam the same dang move like biomanipulation, however psionics is horribly costly, so it has its balance.

For me, it's people that intentionally try to loophole the system, or build one note jokes that have no depth. Pretty much, if a char is 'built' because someone thinks it's a badass combo, but has no justification.

Nightbane has seen a lot of these types

This is most common approach by myself & the other usual GM.

We have experienced PB players, so they know what's out there. Generally, explain your char concept & it'll usually be approved - with warning about anti-DBee/mage bias, or that you have inherent pro-con due to familial contacts. Equipment is slightly limited - again, based on char concept.

We have had games that are restricted to a half-dozen or less books, folks adapt well to those.

In regard to PFRPG

I allow all base classes and races that are in the Main Book. Almost all PF monster races are allowed as player characters. Except for a few exceptions i.e., most supernatural monsters including undead and faeries; Ki-Lin, Lizard Mage, Sphinx, Dragons etc...(monsters with animal intelligences are also not be allowed as PCs)

All classes within the core books are allowed
No Rifts or alternate dimensional classes or characters
No Rifter anything is allowed

I could careless about the character race or class that is played. What I really want to see is if that player is creating a character with depth and personality that is role-played accurately.

I will nerf something that unbalances the level of play for all players involved. So if one player continually steals the thunder from everyone else (Not because he is clever or a better player) but because he has "unearned" advantage over the others than I will limited it before it ever gets into a game.