Personally, I didn't liked Third Person Perspective in Oblivion because it was much less accurate than First. But in Skyrim, I use almost all the time only Third Person, because I've got some good looking at my character and a nice focus on the environment in one. And I can turn the camera around to look at my characters ugly face.
I am playing an archer in third person mostly with hud off. It's great. Archery in this game is much better than in Oblivion. I do play in first person though in certain areas though, when I want to change the cinematics.
With combat and outdoor exploration, I switch between them. Third-person combat is a joy, especially compared to Oblivion's. However, when you're trying to pick stuff up, or when you're in certain dungeons, you sort of have to use first-person.
Depends on the situation im in! If in looting a dead body im in first person. If im fighting then for sure third person because i can see better! I personally use both!!!
It's stupid to walk around in first person - to me - because you can't see your characters body or hands. But in combat I like using it more then TP in combat.
I prefer 3rd person for walkabout, zoom out for chase fights such as the Frost Troll, and closer for one on one close combat. I switch to 1st when looking at pick-ups and searching an area or talking to somebody. Walking with 3rd person zoomed in just below the waist, fingers touching the bottom of the tv screen.
It depends what I'm doing. I like third person in Skyrim, but generally in dungeons/while doing archery I will switch to first. I like first person finishes more.
3rd person would of been much better if when you ran backward, you turned and ran toward the camera rather than literally ran backward... if you dont know what I mean check out splinter cell chaos theory.. the perfect 3rd person camera - total freedom.
'but how would combat have worked'? simple, when you draw a weapon, then you get fixed on a forward axis.
I'm in third person most the time. Use it for combat sometimes, first person for archery, and when in tight spaces where the third person camera has a habit of obscuring vision.