I don't wanna judge other peoples' opinions, but I think that if all install http://www.tesnexus.com/downloads/file.php?id=8991 and played with it an entire game; quite a lot of those people would say no to it.
Sometimes there can be just too much realism. This is one of those cases in my opinion.
That mod looks terrible and not what I envision at all(sorry to whoever made it, I realize there was only so much you could do).
What my idea is, is to give the player the feeling of putting the helm on and through the use of proper sound and visual effect, make it feel like its on his head without ridiculously obstructing a large portion of the screen.
When the helmet is first equipped, it would trigger a distinct animation of the PC raising his arms with helm in hand, up and over his head, and then sliding it on. This point here is where the tricky part comes in. They need to animate the helm passing in front of the face(the 1st person camera) in such a way that it completely blocks out the view of the world around him for a split second as it passes. In that instant the 1st person camera perspective's field of view(FOV) needs to be widened ever so slighlty(this is to help balance a slight zoom that I'll get to soon enough).
Now from here the helm is slipped on. As it comes down over the head, the inside of the helm as well as its edges, should all look realistic(not just straight angles and shaded lines, but it should look like how a helm would look from the inside). The helm should be animated in such a way that it seems to wrap conically around the face(camera) and there should be a certain depth to it in those first few instants and depending on the helm style, you should feel like you're inside it (the widened field of view that I spoke of earlier will help to create this effect). The helm should also be severely obtrusive in that instant, to give you the illusion that it is in fact being worn, but you have to remember that at this point its only been one or two seconds since you decided to equip it.
Centred in the middle of the screen will be the unobstructed view of the world, outlined by the defining shape of the helm's front. The world should seem somewhat distant to once again re-enforce that feeling of being inside the helm(but remember only a couple seconds have passed).
Suddenly your view of the world seems to rush up on you, and fill the screen in such a way that it did before the helm was put on. Your focus zooms in on the open, unobstructed space in the front of the helm to bring the world beyond the helm into the foreground of the screen. The obstructing parts of the helm would be pushed aside as your focus re-alligns on the world around you. Those parts of the helm would shrink away and slide deep into your peripheral view; settling as a very thin, out-of-focus, darkened, blur around the perimeter of the screen.
Essentially the widened field of view that initiates when you first put the helm on, and the zoom that happens when you look through the front of the helm would work against each other and nearly balance each other out; with one side effect. Despite the increased field of view, the zoom would ultimately create a small blind spot around the character, effectively simulating a small loss in peripheral view without placing obstructions all across the screen.
Now, add effects like slighlty muffling all of the environment and NPC noise created outside the helm; amplify the sound of strikes to the armor and helm itself; make critical hits and staggering blows delivered by enemy NPCs flux your character's focus between those two points I just discussed, and finally make the thin out-of-focus outline of the helm move around slightly to compliment your character's movements and the actions taking place on screen and you have yourself a highly immersive experience without all the ridiculous obstructions that everyone is worried about.
Anyone who reads this, who can understand what it is I'm trying to say, and who can then visualize my description in their mind can't possibly argue that this would be pointless or that some things shouldn't be made realistic. This; if done right, would be awesomely enriching to the gameplay experience.
One side note: I'm no camera or photography expert, and what I described may not exactly generate the effect that I outlined, but I'm sure that some combination of those two variables(ZOOM in/out + FOV increase/decrease) acting independantly and separately on both the unobstructed view of the world and the obstructing parts of the helmet at the same time, would be able to create the effect I envision.