I've found that over several playthroughs, the following is the order of playstyles for me in terms of entertainment/interest:

1. Magic

2. Stealth

3. Melee

Melee is not particularly interesting for me. Granted, it's much improved from Oblivion, but the range of things you can do, and the tactics involved, are just not as broad as for magic. Even stealth arguably has more tactics involved, although admittedly these only come into play when you have more of the perks (similar to melee).

Here are some things that would make melee better for me:

1. Stagger works both ways. At the moment, you stagger enemies way more than vice-versa regardless of perks (the perk that improves your stagger ratio is basically useless). This should only be the case if you have a significant level/perk advantage. At the start of the game it should be basically equal. If you hit an enemy with a power attack with a sword, you should stagger them a bit. If they hit you with a sword, the same should be true. If you or they power attack with a greatsword, it should be heavy stagger, and so on.

Obviously as you level up it makes sense to introduce perks, so that at level 50 you can actually crush lowly bandits. But you should have to work for that.

2. More tactics. You basically just strike and block (and occasionally bash) right now. I want to see grappling, trips, wrestling, charges, dodges etc introduced. If you charge someone you can stagger them, possibly knock them down etc. However if they dodge successfully, you lose your balance. If they dodge and trip you up, you get knocked to the ground etc.

3. No more damage sponges. I get that tougher enemies need to have higher health, but not ridiculously higher health. Most of the difference between a high level character and a low level one should be skill and perks, not massive, incredible health discrepancies.

Any thoughts on how Bethesda can improve melee for future games?

#3. I agree with no more damage sponges.

And if a enemy begs for mercy, and you let them go, they shouldn't get back up and attack. It seems that they should run away.

I love how much archery was improved in Skyrim, however I have a few thoughts on that.

Locational damage: An arrow in the head would be instant KO. This could be for player character as well.

And please, no more enemies getting hit with an arrow and saying "Is someone there?" They should act like they were hit.

I've found Requiem makes melee a lot more interesting. No more damage sponges. Bull rushing attacks. Dodges. Using terrain to your advantage becomes much more necessary.

There is also Duke Patrick's mod, but I don't think that one is compatible with a controller, so I don't use it.