They had lots of damaging and crippling limbs in Fallout so Bethesda should be able to do it for TES, also why does everyone hate hit points?!
Well i think the system i suggest is even MORE expanded, it's closer to the level of Dwarf Fortress really though not THAT detailed in total (DF also even keeps track of lost fingers).
The hit points thing it's not that i hate them but i just think there can be better systems. After all the blood loss system is similar to a hitpoint system but it's more dynamic by having bleedings and some hits that DON'T cause health loss but still affact your character negatively. In a classic hitpoint systme hit is hit and a BIG problem is, for example arrows, either have to be insanley overpowered almost to the level of a rocket to do any damage OR are so lame that you need to pincushion someone to have any result. In a damage location and blood loss based system a arrow can either cause a "crippling" injure by being stuck in the muscle tissue or a bleeding internal wound. For both the arrow doesn't have to be insanely overpowered to be effective.