Doesn't really matter much to me. It would add another inch to immersion, but only just.
Agreed. But only a 1/4" for me.
Get everything related to quests, plot, gameplay, combat, magic, lively cities, dialogue, animations, leveling, draw distance, weather effects, skills, perks, attributes, cooking, mining, woodcutting, jobs, alchemy---get all of that right and I really don't care about the 1 inch gap between my character and his sword. Sorry.