I've only played through the intro, a bandit camp, and a cave full of bandits, but I definitely agree, so far magic is way more fun than Oblivion. Setting people on fire, or watching lightning arc across their skin is way more satisfying than almost anything in Oblivion. Additionally, more than once, when I've run across multiple enemies, I've shot some fire at them with my left hand, realized I should try to use my sword to level that too, but I kill them with fire before they even make it to me. That's how a mage should play! I also like the change to a constant stream of magic firing from my hands, since now I don't have to waste half of my magicka when my Big Powerful Spell misses.