Agreed. The possibility of evolution is the key idea I think, and where the divide between classes and freedom comes from.
I had a character for a while that started as a Two-Handed warrior. Then I came across an enemy that was pretty darn good with a shield, bashing me tactically. My character decided that she'd never really respected the Block and One Handed style of fighting before, but she now saw its potential and decided to take it up herself. She wasn't good at it at first, of course, but eventually was.
In a strict class system, the only way I could've gone with this angle is if I planned it out at the beginning of the game. At least if I actually wanted it to help her level. To me that takes all the fun out of it. A character is more than just a role, in my view, she ought to become interested in new things. Rather difficult to keep myself out of her, I guess.
That's not even getting into the whole "Ugh why did I put that skill as a major one, it turns out I don't like it" thing. I know I wasn't the only naive fool who took one of the pre-made classes in Oblivion and found out each one of them seems to have at least one skill which is a total chore to level. In my case it was Speechcraft, which I quickly came to despise. That [censored] minigame, gah. Even when making a custom class I still wound up having to slot in a skill I didn't particularly like.
Actually I agree on the Hand to Hand skill too, it should be viable for everyone. I made a quite decent character in Oblivion via modded H2H with the "on touch" type spells (which I also miss).