GeistSR: Yeah, for some reason Humility in Garriott's mind meant "being terrible at everything."
To me, the idea is that Humility seems to be meant as the challenging option; instead of having a difficulty selection on the game (a feature that would not have been common back then), he put in an option that deliberately gives you the worst starting position and the worst main character. The idea is that, by playing as a humble shepherd, you would be, in a sense, put back in your place, even if you are an unskilled player.
In any case, while there may be different approaches to character creation, I recommend avoiding the humble question at character creation unless you are deliberately looking for a hard challenge. (This applies to Ultima 5 and 6 as well; In Ultima 6, you shouldn't use the Shrine of Humility to level up, either, as it provides no stat boosts.)
By the way, I have noticed that Ultima 4's Fighter class is also rather lousy. Not only can he* not use magic, but he doesn't get any ranged magic weapons either. This results in him being one of the worst characters in the final dungeon, where non-magical weapons don't work at all, and makes him inferior, not counting his magical abilities, to everyone else except the Shepherd. Meanwhile, the Mage, who is the best caster in the game, also gets the strongest ranged weapon in the game.
*: Using this pronoun because that's the one appropriate for the recruitable Fighter if it's not your main character.