At the beginning levels it would be a pain in the ass since you're weak as heck and you don't exactly have the best spells at your fingertips. At the later levels pure mage is the most powerful thing in the game I know that. Even then I would think they would use staves instead of nothing.
Have you tried to be a pure mage? I have used a sword for fun, mostly as an instrument for blocking, but once you leave the tutorial sewers, you can visit the Imperial City and buy a simple fire touch spell. Most enemies are weak to fire, and those who are not are weak to shock. If you have destruction as a main skill, you come start with a minor shock spell. Early levels you can just set things on fire with your touch spell and work your way up to higher levels. Clan Feeders and Dedra have a resistance to fire and are both weak to shock spells. As long as you have both Fire and shock spells, you should be good to go. in fact, going magic allows you to walk right through the beginning of the game. It makes it "too easy" in my opinion. It sure s fun though.
To answer the original question, I try to use Long Swords and the Katana. The Katana is cool, but it doesn't have that medieval Europe feel to it he other swords do. I like the look of the fine steel swords a early levels. The Blackwater Blade was a favorite of mine for a while. Elvish swords and glass armor don't do it for me either. I like Fine steel and Ebon equipment. Chainmail and Methril are pretty cool as well.