My favorite character, without question, is Bankotsu of the Band of Seven, and really, all of the Band of Seven except for Kyokotsu and Mukotsu. Many people say the Band of Seven were just bloodthirsty killers, but they don't look beyond that. In reality, they were a group of strong men who cared deeply for each other. There are some arguments against this, mostly with Renkotsu, such as:
Renkotsu killed Jakotsu! -Well, yes, but he didn't want to. He was a goal-oriented person, and he was worried that Bankotsu was not leading them where he wanted to go. I think Renkotsu desperately wanted attention. He sent Jakotsu to be killed by Inuyasha, but Inuyasha didn't succeed. He knew he had to kill Jakotsu, but he apoligized as he did so.
Bankotsu killed Renkotsu! -Again, yes he did, but not maliciously as it was played out to be. Basically, Bankotsu saw Renkotsu as a person who thought of himself before the "team," and he needed to be taught that that wasn't how he should be. Bankotsu respected Renkotsu, but thought his values were a little mixed up. He also needed his jewel shard to avenge his comrades.
Now that I'm done defending the Band of Seven, I'll explain why Bankotsu is my favorite. Basically, he has everything. Awesome style, AWESOME sword (Banryuu is even bigger than Inuyasha's sword), and he was a loyal, brave warrior who cared deeply about his comrades. Also, it helps that he's the only atheist in the whole series.
Second comes Ginkotsu, because of his loyalty, then Jakotsu, then Suikotsu, and last, Renkotsu.
Outside of the Band of Seven, my favorite characters are Sango, Kouga, Kagura, and Rin. (Sango and Kagura for independence, Kouga and Rin for loyalty)
My least favorite characters are Inuyasha, Kagome, and Naraku.
Inuyasha bugs me. He's just stupid and annoying. And he helped kill Bankotsu.
Naraku is just a stereotypical "bad guy." There's nothing to like. Plus, he insulted Bankotsu's need to avenge his friends.
Kagome is so anti-feminest. She does barely anything without help. Yes, she's kind, but she really needs to stick up for herself BY HERSELF sometimes.
And now, I should quickly adress the issue of Kikyo, I really should. I used to hate her, back in the days when I liked Inuyasha and Kagome. I wanted her to die, but now, she's neutral. She is somewhat annoying because she's obsessed with her own tragedy (Talk about self-centered) but then, how would YOU feel if the person you died for easily forgot you and found someone new?