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You do also have to remember that bows are generaly very powerful and most are designed to kill in one shot. I like the bows the way they are now because I think its more relistic than say Oblivion where I can have an arrow sticking out of someones eye and they run to go tell the gards.
Even in medieval times, most arrows (even bodkin arrows fired by longbows) were unable to pierce plate armor (unless you got an incredibly lucky hit, which you get if you fire thousands of 'em). This is why later medieval knights often didn't even wear shields (or very small ones).
There are records of crusaders fighting muslims, looking like a porcupine from all the arrows lodged in their clothing. And yet, most of them weren't badly wounded. Also, a wound from an arrow is often not enough to completely stop someone if it doesnt hit a critical spot. The bleeding and/or infection is pretty nasty in the long run though.
And Oblivion is the antithesis of realistic combat. 
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I still think it's overkill though, for every goblin bowman and his mother to be able to run an arrow through a fully armored legendary dwarf's heart with one single shot. I'm serious, I've had this happen like five times. They always pierce the damn heart.
Them kobolds are nasty. I mostly avoid them.