Horrible range,correct me if Im wrong but you get more range with a dagger,and not to mention punching a Dragon from the sky wouldnt make sense unless it had an animation of you literally jumping on it,hanging for dear life as you furiously poke your finger in its eye xDDD That would be funny.
And how exactly would you fight a bear with nothing but hands? I mean I know this isn't real life but.....you get the point ;P
But lets say if it was a full blown fighting mechanic,how do you think it would work? Would perks be different fighting styles? Hapkido? Mui Thai? Wrestling? Boxing?
Perk that allows a Haymaker that stuns someone for 10secs.....
Weighted Blows,that would allow each punch to stagger the enemy or give a certain chance to stagger?
Fist of the North Star? People would just instantly explode? LOL
It would of been cool to snap peoples necks or other things though but....when you bring some arrows,a fire spell,and a warhammer into the fight,hand to hand pretty much becomes obsolete.
Atleast,thats my opinion.