I tried it too and actually its not so bad since weapon skills suck atm anyway and all you need scales with magicka. Its a legit way to do quests, all you miss is stats from a weapon.

What made me stop playing it is wierd laggy unarmed animations when you hit something(when you punch in the air its fine).

I hope they will add some kind of handwraps weapon and unarmed skill line eventually. Id play for sure.

Hah! I did it! Quality could be better, but still.

Behold the glory of hand to hand!

https://www.youtube.com/watch?v=rFPEjyr0KE8

Sweet mother of Akatosh, yes. I want a valid unarmed combat style. Weapon slot stats may be compensated for with some sort of arm-wrap things, or something.

To be honest I'd prefer a more traditional approach, maybe will a little magic mixed in but for the most part purely martial arts, and to be a weapon skill rather than a class.
I don't think a class that's designed purely for a specific weapon in mind would fit too well in ESO - sure all our current classes have the typical weapon they'd use but you can generally use whatever you want and be effective.
My vision of an unarmed skill is basically like a flashy martial artist, dealing heavy blows to weak spots in quick succession, and using their entire body - not just the fists.
Something like an attack speed buff, a CC skill, maybe a fancy roundhouse kick as well as unarmed damage actually scaling would be amazing.