This is a work of fiction. All the characters in it, human and otherwise, are imaginary, excepting only certain of the fairy folk, whom it might be unwise to offend by casting doubts on their existence. Or lack thereof.
If you cared enough about your characters, what happened to them was interesting... it's important to care about them, about who they are and what they do...I don't really care whose side they are on, and they can be monstrous on the outside or, worse, on the inside, but you still have to want to spend time with them.
I tweet, therefore my entire life has shrunk to 140 character chunks of instant event and predigested gnomic wisdom. And swearing.
Picking one of your favorite creation or character is like picking the best one of your children! I'm not sure it really works. My very favorite characters tend to be ones I can go back to and look at, and have no idea how they popped out of my head.
There's definitely a feeling with a short story that it's pure story telling. You're not really worried about theme. You're not going to stay with the characters long enough to live your life with them. And you have different kinds of relationships with them.
I've been inspired by dreams - I've even stolen scenes or images or characters from them.
One of the things I'm concerned about is that I really want to make sure the races of all the characters are kept. I don't like it when black characters become white in movies, or things like that.