I think everyone would be lying if they said that looks don't matter for anything. I actually did try dating someone I was minimally attracted to who had a great personality, but it just didn't work. That whole, "you're a great guy, but just not for me" thing fit quite well in that particular situation.
Physical attraction is a must for me and of course personality, but if there's just no physical chemistry then I know I won't be with them for long to waste mine or his time.
And I wouldn't not approach someone because I thought they were good looking, that's just silly. I'm confident enough in my looks that if he were to reject me, that'd be his loss and not mine. ^_^