One game that focused on the fear factor more than anything else (and did it tremendously well) is Bioshock. Luckily the dev's took some inspiration from it
regarding the spells, but I hope they took some more aspects of it...
In Bioshock there was absolutely no consequence dying, if you died you would just return in the nearest Vita Chamber with health and a little eve (which is like magicka in TES).
Thing is, they made you forget about what happens when you die while playing the game, cause, for one thing, it had a lot of depth.
Secondly, I remember the scariest moment (among hundreds of scary moments while playing...) in Bioshock:
There was this staircase that led two floors down. I walked to it and I saw a room flooded with low water (ones that you can walk around on), it had dressing-dolls standing in different places, the room was extremely large and extremely empty besides the water and the dolls (and a window that spread along the northern wall that viewed the city the game is in - Rapture). I went forth and saw a bonus, I thought to myself that it was weird this room is so empty, I turned around and was just about to exit the room, then I noticed something strange, an ice statue of a faceless dancer stood near the exit, it wasn't there before. I looked to the side for a second to inspect the room, I looked back and she was gone. I looked around and there she was standing near the western wall, closer to me. I looked to the exit again and I saw another statue, and the more I looked around they just kept changing places until I got closer to them, looked behind me and then I saw that ice sculpture attacking, a ballet dancer with two very sharp knives. Greatest moment ever, I never met a game with Bioshock originality in horror.
Ofcourse such things won't be in TES games, but I want them to make me forget there's not much consequence to dying.