Yes - a couple things. They said it was normal to have the knobs greyed out, nothing to worry about. They also said that the version they were using has functional knobs, so I'd maybe expect to see that in some future OS update:

(sorry Access, if I wasn't supposed to say that).

They also asked if I had tried it with another DAW besides Cubase, which I haven't. But it appears you have tried it with Live and it's the same.

All of the dsp functions that Access uses usually have an effect that can be pushed to very drastic limits to produce great changes in sounds.
This led me to believe that there might be something wrong with the current implementation of the characters.

well i've only had my TI for about a day, but I've looked into this on my OS3.

under character, I do get all three knobs. the character type, the intensity, and the frequency.

but intensity and frequency are extremely subtle - to the point where sometimes i'm not sure if it's actually doing anything...

Hey cl: yep, it's me. Liking your TI so far?

There's a bunch of different 'characters' to select. They all have visible knobs, but only the first and last characters have knobs that are highlighted dark and functioning.
The rest of the characters have knobs that are visible, but greyed out and non-functioning.

That's weird!
Everything is greyed out here as well.

Those knobs tend to change the quality of the sound just slightly. It's like a last minute touch up to your patch if required to get some subtle changes. Crank your speakers and dial through them, you should notice a difference pretty easily.