Like if a bunch of bandits are wailing on me?

It will boost your armor a bit, but won't outright block like it does spells. It's not like a shield.

It raises your AR, but other than that IDK.

As far as I know, wards are only to block magic. Ive never seen one block a physical attack.

They don't block physical attacks, but they increase your AR by the amount given by the spell.

It would have been cool if there were a perk for wards that deflected arrows.

This is helpful, I was wondering the same thing.

Also, if your ward breaks and you are stunned for a few secs, I assume that means the enemy's attacks are stronger than your ward? And you need to jump up to the next powerful ward... Right?

Essentially, yes, as far as magic attacks go. However, even if your ward is broken, you still block the damage of the spell cast at you.

As far as physical attacks, it usually just means you were staggered by either a power attack or shield bash, which will automatically break any ward.

Especially considering how mages are fleshy pin cushions against archers.