As well as in the D&D series after the last AD&D one.
I'll use BG as the example.
Start off not that great, by the end however you'll deal tremendous fast, multipule blows that ignored weapon resistances.
That could paralyze and slay in one hit, you could sneak as a rogue, heal yourself as a priest.
Where immune to many types of effects and certain spells, I think spell resistance and normal weapons.
If using Oblivions set up, this would be a modded max Hand to hand skill, heavy spell enchantments as base abilities..
Such as magic resistance, resist normal weapons, drain health 1 second 100+ damage, paralyze, fortify speed, a heavy heal spell.
So I'm not saying hand to hand itself would beat a dragon irl, but fantasy and roleplay allow it.
All it takes is watching films, reading books and thinking about what a monk character on Nirn would be able to do.
Myself playing a modded game with a pure hand to hander and no spells it's fun.
For Skyrim I may go for using these skills.
Hand to hand, sneak, illusion, restoration and destruction mostly.