How about a battleground in the shivering isles. Two or three teams start on opposite sides of the island in the center of the island sets the wabbajak. Each team must fight their way to the center and attempt to claim it. Then begin using it on the other team. The wabajak's magic is completely random and can transform targets into anything chickens, pigs rats gremlins, dwemer constructs, ogres, titans etc etc etc. The other teams can kill the user and claim the wabbajak to use it. The first team to transform all opponents into helpless critters wins!
At the end of the match sheogorath reclaims the staff and send you back to Tamriel.
I want spell crafting.