I know Daggerfall can be really easy if you know what you're doing--that's not what this topic is about
Let's discuss your favorite challenges you've attempted in Daggerfall--and how they turned out!

Some common ones:
No Magic: actually not much of a challenge run because you then just play BruteBro the Warrior-King and crush everything with melee. No Recall can be tedious, but perfectly doable if you keep your direction in dungeon and don't get lost. No levitation can be ugly, but climbing and jumping are great--although there is that odd pit in that one dungeon block that is impossible to get back out of without levitation...
Magic Only: Much more difficult!
Fraidy-Khajiit: take a whole ton of Phobias. Heh.

More unique:
Linguist: The famous joke challenge. Language skills only, which would be more fun if language skills were worth a damn and if more enemies could be pacified in this manner.
Void Ranger: Try to do as many dungeon quests from within the Void. Archery and/or area spells are a must-have!

Really difficult:
No Crime: Holy hell this one is tough for me--I really find it hard not to rob those poor merchants blind. See a nice weapon... gonna break in tonight! I played a few characters attempting this in addition to some other quirks... they just didn't keep my interest.
Low-Health: Knock that END down to 10 and HP/Level down as low as it can go. You'll average +1HP/level, and suddenly everyone is deadly and many are 1-hit knockouts.
Low Skills: This one requires a save editor, but immediately after character creation hack all your skills down to 5 and Start_Skill_Sum to 30. You svck at everything for a long time, but if you stick it through you could get to level 38!
Level One Forever: Also using a save editor, change your Start_Skill_Sum to 600+. This simply means that your attributes and max health never change. It also means you never see the best equipment and can't do the main quest--oh well.

What are your challenges?

Post yours