Dunno if I'm just a bit thick, but I don't actually understand get what this means. Really. No idea.
ANYWAY.
1. With that in mind, what is your definition of character and story?
If the story is the a hot wheels racetrack, the character is the toy car. The racetrack itself can be a straight road, or a series of ups and downs, or a loop-de-loop leading to a dive off the edge of the table. Depending on the car you put on the track, things will turn out differently. Like well-written characters, cars will respond in a unique way to the track they're set on. Some might take corners really well, but fall off on the loop-de-loops. One car might stop-start, or flip itself off the track unexpectedly. We don't know! But the way you construct the track and choose your cars makes for interesting stuff.
2. What examples have you enjoyed over time where you feel character and story have been done well?
Obvious example: Toy Story.
Going back to the hotwheels analogy: every character in Toy Story is a car with its own quirks. Woody is jealous and impatient. Buzz is brave and gullible, blah blah blah.
At the beginning of Toy Story the track is simple. All the issues within Andy's household can be solved by the characters themselves, like Woody tossing Buzz out the window, but as soon as the track goes a little bit wild (i.e. they end up in the neighbour's house or Pizza Planet) we really start to notice the problems with the cars themselves and things get exciting when we start to wonder if they'll even make it to the end or not.
I think what makes Toy Story compelling in an objective sense is that character flaws are outlined to us before the story gets wild. Like, we just know Woody is going to react badly to x, y or z because it's made clear to us from the very beginning that he just is that kind of person. They give us a rundown of what each character is at their core during that early segment, then show us this wild track and go SHALL WE SEE HOW THEY GET ON??
TLDR; Before things get pacey in Toy Story we have all the tools needed to form expectations of the characters. Seeing if a character meets or defies those expectations is what makes a compelling story.
3. What examples do you think have been done wrong and how can we learn from it?
I can't think of one off the top of my head, but a story where the characters are insconsistent can be really frustrating. Like a character who is historically wicked suddenly being merciful without a valid reason...brain surgery or bribery for example. It's a huge wtf. There is absolutely nothing wrong with having a character defy expectations but it has to make sense. It'd be like picking a car off the track before the loop-de-loop and putting it down on the other side and going 'lets just say it everything went well'. BULLSHIT. We know that car would have hit the deck.