It seems to me that in class we discussed who the characters are, for the most part. As a director, I would have to help the actors develop their character to make the play work. My choice would be to portray all the characters as complex, if possible, although I would focus on the complexities of Shylock and Portia. As we discussed, each character has two sides. Shylock is either the official Bad Guy or a marginalized, persecuted victim. In reality, though, few are one or the other. For the most part, people are confused, reactive, and not either/or choices. Shylock is a victim. He's been abused and scorned and hurt deeply. He's suffered for his beliefs. But it's not as though we can't see the Bad Guy in him, too. Sure, he's been hurt, but not everyone who's spit tries to kill the spitter. He's a complex character that tries to be calculating but is also impulsive in ways, he lets feelings control him. My view of Portia is likewise complex. She is neither simply a noble virgin obeying her father's will and looking for a suitable man nor a heartless manipulator. I see her as a witty girl who wants to have fun. She's worried about having to marry a nasty man, but not so worried that she can't mock all of the suitors behind their backs. Still, she's bound in obedience. She's got uncertainty, duty, and confinement weighing down on her. Bassanio and Antonio have an incredibly (if foolishly) deep friendship that can't be ignored... the love story here is as much theirs as anyone's. But Antonio has a definite jerk factor going on... not to mention a little emo deal going on. he seems to enjoy moping around and making fun of Jews, which is pretty lame. He's a deeply loyal man, but not necessarily a kind one.

As for other direction choices, I think it would be interesting to set this in the present day (with all the original language intact). I guess my point in doing this would be to emphasize the fact that, despite hundreds (or even thousands) of years, we're so quick to marginalize people, judge them based on their religion or whatever is convenient for us. But even with the rest set in the modern day, I would have Portia and her palace be Shakespearian style, with just a touch of modern day influence thrown in. (Like she has a fancy dress, but converse and a pony-tail.) She's such a great character in my mind, a witty, dynamic girl who's trapped by the demands of tradition and her father, yet manages to circumvent them somewhat.