I have played around greatly with all the shadow options in the ini. The only thing which even approaches good quality requires not only a notable GPU load but reducing the shadow draw distance quite a bit.
The solution I would like to see is a balance between a "fix" and acceptance. See, I can accept shadow maps for what they are. I don't have to rub my face against a wall to try and find the flaws in the game graphics. I can just try and sit back and enjoy. The problem is the certain times these pixel shadows are just rubbed in your face and make your eyes bleed, no matter how hard you try to ignore them.
I managed to fix one major culprit of this! fFlickeringLightDistance=0.0000 in the Skyrim.ini stops all the fireplace flicker and such which makes the "pixel dance" so blatantly obvious.
The only thing I need now, and the point of this long-winded post, is the ability to disable shadows being cast ON characters (especially their own "self shadowing"). I'm fine with the shadows they are casting on the ground, but their own self shadowing around the neck and face is HORRIBLE and completely ruins my enjoyment of any interaction with NPCs, namely outdoors as it is as I mentioned "in your face" and hard to ignore. If there was a way to disable this, it would likely double my enjoyment of the game. That's it, thanks for your time.