Yes, it's definitely okay to make your own character inspired by him :] I find it flattering, I'm glad you enjoyed the game!
Thanks for letting me know about the glitch, I'll look into it. If there's any message shown before the game crashes, please let me know, it'd make it much easier to figure out what's wrong.
The wakefulness is more of a gauge than a gameplay changing that, yes, though that might or might not change in the future. As for the sanity, though, it actually changes more than you think! It may not be as explicit for the player as in the "your sanity ran out" endings, but certain choices and scenes ARE actually sanity-dependent.