In Oblivion the effect for having blood appear on your weapon and such was nice, and a step up from games without it, but the effect quickly went away (unless you modded it to stay longer) and wasn't all that dynamic after a while. After this the next game taht I noticed such a feature in was Dragon Age, which I'm sure most people here have played. In DA when you fought a battle your characters would have blood splattered onto them in various places (even their faces, etc) along with their clothing/armour. After a fight this made things look more believable and it just made your character look like they actually went through a battle.
For Skyrim I'd like to see it even go a step further. Not only having a more dynamic blood splatter onto your skin/clothing/armour/weapon, but having actual wounds appear on your body (Which if not doable dynamically on location, done via your health). So the lower your health is your character actually visually displays this. Having cuts, bruises, and wounds on his/her body.
Is this something you'd like to see? Overall I just would like to have my character actually look like you'd expect to see someone looking after they just went through a battle and were right up int he action fighting as they do.