Also in Daggerfall, high level souls would give you great enchanments, but also some side effects too. Almost like Sigil Stones in Oblivion. I honestly preferred the Daggerfall way for roleplaying's sake.
If I were head honcho of Bethesda, I'd put Daggerfall's enchanting system back in TES5.
- Using souls wasn't needed. Each item had an intrinsic enchanting capacity. It's just that it was very low, and binding souls to the item increased this capacity drastically.
- Many souls had side-effects, some of them positive but most of them negative.
- You could put several souls in the same item.
- When the object broke, the souls were released, resulting in a certain chance of instant resurrection for the creature trapped inside. They were, unsurprisingly, angry at you when that happened.