All characters will be active, but you won't be able to create any new ones. You will only lose access to one of your crew skills on each character. You will get it back, if you decide to subscribe again in the future.
I on the other hand, would like to see [flirt] dialogue options for Khem Val, because he's a beast! I'd like to see him "devour" my little sith, as he calls her.
I had a 1on1 faceoff with one BH-Merc and beaten him to the pulp with my SI-Sorc.
As my Sorc would say "It was actually quite simple." - I wanna free beer each time she says that.