@ Level 5

Daedric Gauntlets (Flawless) 100 Smithy (No perks) 30 Heavy Armor (+20% Perk) 34 Armor
100 Enchanting, (+20% Perk) Black/Grand Soul Gem +7 H2H Damage

Total Damage:
+15 Racial
+41 Gauntlets
+7 Ring
63 Damage over base

I managed to beat a loan guard to death in roughly 10 punches (on expert) but I am not sure as to what their health/armor is. I was 1 shotting wolves before this with plain steal gauntlets that were at 18 armor.

Daedric Gauntlets are base 20. +8 from my unperked smithy. +100% from heavy armor => 56 (I think)
+5 Enchant + 100% = +10 4 times at max enchanting = +40 Damage
Total: 111

This is without using enchanted smithing/alchemy gear, etc.

Isn't the unarmed Heavy Armor perk currently bugged and actually does nothing?

No, adding heavy gauntlets increased my damage.

Lol that's fine, you're willing to overlook things that the developers leave out.. I guess I just enjoy it when developers do their job properly..

Unless 1.2 changed things, heavy armor perk is bugged. (i haven't tried it after the patch) It only adds the base armor. So you won't really ever go over ~50 damage.

This results in extremely subpar damage mid-high game. I supposed its decent until 20, if somehow you get deadric gauntlets that early.

Just type 'player.forceav unarmeddamage X' and you can make your unarmed attack a viable alternative. Personally I simply upgraded it to be a little below my weapon damage, so it remains a viable fallback. It seems that non-Khajiit characters have an unarmed damage of 1, whereas khajiit have a total of 16 with their bonus. You can also add the Khajiit bonus to any player via the console btw - I added it to my Nord, along with Berserker Rage.

It's a shame for consoles, but at least the dodgy hand to hand system is fixable for PC players.