That's why RTwP wih tweaked damage amounts and combat mechanics would have improved it.
Okay, sure, rebalancing the whole system could make RTWP viable. I still don't like it for TES though.
One of TES's main attributes is emphasis on immersion. For example, the the first-person perspective is one of the most important selling points for TES, and always has been. Cyberpunk 2077 is directly plagiarizing Daggerfall marketing re: first person perspective. I'm shocked nobody has pointed this out yet.
To me, the ideal, mythical TES combat experience never removes me from immersion. That means no pausing to change my entire armor loadout, or my whole weapon loadout; no drinking 15 potions in a billionth of a second; and definitely no pausing combat to come up with strategy.
I think TES has always wanted to be a first person Dark Souls (see the infamous post-Morrowind ex-dev interview ripping on the simplified combat), plus content. However, Beth has always put combat on the back burner, because other things were more pressing, and nobody really competed with them in the first person combat space for decades. Maybe Dark Messiah, but the scope of RPG-ness isn't even comparable.
Yes, there should be subtleties. Animations for fumbling attacks, animations for enemies dodging, parrying and evading, as well as hits that graze or are absorbed by armor. RTwP would slow it down as attacks would be round-based with say, 5 second rounds. You could drink a sujamma, cast Sanctuary and do 2 chops and a stab with your axe. It would add more time and opportunity to use all the items in the game rather than combat being over swiftly by mashing the mouse button. Just my 2.
Again, you're probably right about that, but I'd rather see TES as an ARPG. Turn based and RTWP combat are great, but they aren't immersive. The archetypical Platonic ideal of an ARPG, which I hope TES becomes, would bring those subtleties into the character progression system, combat planning, and moment-to-moment combat decisions.