well i am just making assumptions but there is more to location damage than dismemberment and gore for example i shoot a bandit in the head with an arrow because i want him to die while i waste less arrows
This was in Oblivion, if I recall correctly. You aim for the head, you're going to take em out quicker, and, thus, saving arrows!
But I think with Oblivion it was just head and body.
I think Skyrim should differentiate between head, arms, hands, torso, legs, feet, etc.