Previous Elder Scrolls games made really interesting and compelling use of hand-to-hand combat; whether it was the hand-to-hand skill lines of the earlier games or simply the outright brawls of Skyrim, this form of combat added great fun to the games.
Elder Scrolls Online has made a great MMO adaptation of the varied weapon styles of its predecessors, but hand-to-hand has kind of gone missing in action. The animations of light and heavy attacks look great for a hand-to-hand combatant, but there is unfortunately no method of increasing proficiency, developing new skills, or even using more than one bar worth of skills to fight with.

I would like to propose a method of rectifying the above issues without being too obtrusive to the game's existing combat system.
My vision is in the form of Fighter's Gloves. Fighter's Gloves would serve as two slots of equipable weapons.
Fighter's Gloves would come in two forms: Hand Wraps (crafted using appropriate leveled light armour cloth) and Reinforced Gloves (crafted using leveled medium armour leathers). Each style would provide a bonus based on a passive in the associated skill line.

This method of implementing hand-to-hand would allow it to exist within the current weapon equipment, damage and leveling system, while also preserving the flavour of a good fist fighter or monk.
Khajiit and Argonians crafting styles could have fingerless gloves that allow them to effectively fight with their claws.

I've taken the liberty of drafting up a basic skill outline as an example of potential skills and passives these gloves could unlock. None of these need be set in stone, and I am not dedicated to any of the numerical values -- I just inserted some to give a sense of how I would envision the skills scaling.

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All skills cost Stamina unless noted.
Values in brackets represent values that scale with skill level.

Flurry of Blows
Deals 4 hits to a single target; damage increases per level

Morphs:
Martial Artist
Attack has 7%(8%/9%/10%) increased crit rate
Pugilist
Chance to reduce target attack speed by 5% for 5(6/7/8 ) seconds

Paralyzing Fist
Deals damage and immobilizes target for 3 seconds.
Damage increases each skill level

Morphs:
Stunning Fist
Stuns instead of immobilizes for 3 seconds
Debilitating Fist
also reduces target's weapon damage by 10% for 8 seconds.

Dirt Toss
Enemies in a conal area in front of the caster have 7%(8%/9%/10%) increased miss chance for 15
seconds

Morphs:
Sand Screen
Affected enemies are also disoriented for 5 (6/7/8 ) seconds
Smoke Screen
Affected enemies also take poison damage and are poisoned for 8 seconds (damage scales with skill level)

Inner Energy costs magicka instead of stamina
Increases stamina regeneration by 27%(28%/29%/30%) for 20 seconds

Morphs:
Clear Mind
Caster is immune to CC for 1 (2/3/4) seconds after casting
(the synergy between this morph and Immovable may be too high; perhaps the immunity should be only for specific types of CC such as disorient, stun and off-balance)
Energy Master
Also increases Health regeneration by 7%(8%/9%/10%) for the duration

Go For the Throat
Deals physical damage, increases each level

Morphs:
Strangulation
Also deals physical damage over time for8 seconds after hit
Neck Snap
Damage increases based on target's missing health, up to 300%

Passives:
Drunken Boxer
With two fighter's gloves equipped
For 10 seconds after using a consumable (ie: a beverage or potion) caster has 25% increased hand-to-hand attack speed.

Blood Craze
With fighter's gloves equipped
Handwraps (cloth gloves) provide an additional 2.5%(5%) increased attack speed (2 gloves = 5%/10% increase).
Reinforced fists (leather gloves) provide an additional 1%(2%) damage (2 gloves = 2%/4%)
Player can equip one of each type of glove to receive one of each bonus if desired

Counter
With fighter's gloves equipped
Blocking has a 2.5% (5%) chance to reflect 50% of damage back at attacker

Shadow Boxer
With fighter's gloves equipped
-10% (-20%) reduced stamina and magicka costs for hand-to-hand skills.

Hand-to-Hand Master
With fighter's gloves equipped
+10% (+20%) damage in melee combat

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