For me I will use 3rd person if im in a tuff battle and i need to see whats around me other than that first person.
And I enjoyed walking through the forest looking at my character.
Reply from :Velorien: The ability to switch between first- and third-person is one of the best added features in the Elder Scrolls series, is what makes other games where you cant switch between the two miss being able to. (I must say i agree completely to this)