Before, i always stereotypically think that spells must be ranged like fire ball, lightning bolts and such. Because it always being shown like that in games and movies. So i never bother Touch Spell in Oblivion.
But lately i give it a try, i never wonder how much fun it is!
1. Rarely miss - most enemies will attack in melee range anyway, so Touch Spell rarely miss unless the enemy back off or dodge
2. 3rd person view - it is handy and easy to use in 3rd person view. Ranged Spells need me to go to 1st person view mostly to accurately hit
3. Secondary weapons - our weapons will degrade, enchantment will have no charge, by that time we run out of repair hammers and stones. Touch Spells becomes an effective secondary weapon
4. No friendly fire - sometimes when i cast ranged spells, my ally going into it's path and got hit. Touch Spell is safe to use because we can control who we want to hit
I just want to say, Touch Spell is the most unique feature in this game by Bethesda, because no other games have such thing, and it is fun too!