The Hand to Hand skill has been removed. I don't think this means that you don't still have the ability to punch in unarmed combat. I would imagine it simply means that it's not going to be very effective but can be used for 'messing around' or killing low creatures.
It seems more realistic to me.
Realism, in a magic game. /slowclap
Change the straight block to a deflection (so no damage taken), add in fist weapons, give some disarm and knockdown skills (like time a catch on their sword, leg sweeps) and the possibility of going down a swift-kung fu like style, or a stand there and smack things style.
They could add in special moves where you infuse magicka into your fists for some weird and wonderful effect. That would hurt monsters.