Why do people not like characters based off them?

The kind of characters I write would make libel lawyers cry for mercy when forced by their clients to see what the hell they're accusing me of, because there's nothing particularly libelous about making an original character who is an onryo, or Stringy-Haired Ghost Girl single mother who used to be a J-Pop idol in the vein of Weird Al Yankovic in covering Western pop chart tracks in English, but after she was murdered while pregnant (but if a pregnant onryo gets murdered, I'm guessing her kid becomes an onryo too, I looked this shit up and that's as close as I could find to an explaination of the logistics of this) she takes solace in the single parent subtext in the lyrics of... Eminem... and as a result her lyrics become Darker and Edgier as she uses her posthumous singing career to rage at the society that disposes J-Idols so easily, and so soon forgets if a discarded one is murdered.

Yep, nothing possibly libelous about that. Unless Eminem decided that comparing his music to that of an onryo single mother's would be offensive because he tries to bring up Halie real good.

The main problem is if someone tries to make a character like me in a story, they're dangerously likely to only include the superficial stuff, the easily noticable, and leave out all the important things.

Extremely few people know me well enough to be at all able to paint an even partially true picture of me. Anyone else trying it would be doing a shallow parody, which would of course upset me to an extreme degree.