I actually love mass effect, when I die in mass effect, I feel it's my fault, and it's something I do differently and improve on. This makes it a fair death.
I hate those tomb raider games because I feel the controls are too 'floaty' and so when I die and have to replay all that gameplay, I feel it is unfair because it doesn't feel like my fault.
I never found oblivion challenging and I never got frustrated, what I would find unfair is if I'm aware I'm low on health, but can't do anything about because I can't use a potion, making the death feel like it wasn't my fault, and thus unfair.
I hope that clarifies the difference, it's not like I want god mode with unlimited money or something, I just don't want to die from poor game mechanics.
But, in a well-made game, it WAS your fault. YOU got to the point where your health fell low, YOU fought like a cow, YOU failed to properly utilize the tools at your disposal to succeed. Thus, the AI triumphs, and you pay the price. http://www.youtube.com/watch?v=P6iT-lMgfAI Game over. Reload, try again, and do better next time.
You say you don't want to die an unfair death? Well, hello, Fallout and Oblivion are anything but fair...to the AI. You don't see the enemies in them carrying around the truckloads of healing potions, enchanted items, and cheap spells the PC is capable of.
It's a terrible idea, I don't want the game to be more realistic what I want is more game play balance unlike in Oblivion where you could pop Invisible on command or equip 100% Reflect Damage Equipment and totally pown the opponent. Having this system ruins any type of balance you could have and it will force players to focus on Restoration and if that happens then why did we get rid of Major, Minor skills in the 1st place. The Witcher has a unique system but so does Skyrim and the Rest of The Elder Scrolls games. If people want to mod this into their games go for it, I would love to see what you could do with it but not in the vanilla version, not to mention that Skyrim will probably be getting a whole bunch of people who have never played Morrowind, or Oblivion and Beth needs to make sure that their transition into The Elder Scrolls universe isn't a rocky one. This system doesn't help their transition, now would it make the game harder and more fun that's a possibity but you might make the game too hard which would be a terrible idea.
Are you really the 'Terror of Death,' or do you just have a lot of it?
How the skills are balanced depends on a whole lot factors. Potions will always have the advantage over spells in that their effectiveness is not tied to any skill, they don't require Magicka to use, and they're often more flexible. Keep in mind, with the way the current system works out, depending on Restoration to keep yourself healthy comes with its own drawbacks, namely in the fact that to have a healing spell equipped means you have to deprive yourself of another weapon (which could in turn help keep you alive by killing faster), a shield (to prevent damage from being taken in the first place), or any spell (which could do near anything). And even if your worst case scenario were to happen, so what? Skyrim, more than its predecessors, encourages adapting a play style on the fly, explicitly because it gets rid of Majors and Minors. If you find yourself having to use it all the time, great, at least you wouldn't have gimped yourself when selecting/creating your class.
And making the transition to Elder Scrolls as smooth as possible for brand new players? Are you [censored] kidding me? Must the series perpetually keep itself simple, must its mechanics remain static, must there be no sense of experimentation, all so it can continue to attract new fans?