However, there are no benefits (and in fact several drawbacks) until you reach level 20 when you can specialize in hand to hand. Until then, you won't be able to parry or dual wield with your hands. I'd recommend using a mixture of swords, axes, and maces until you reach level 20, then go barehanded.

Weapon skill plays a part in a couple crucial skills - how well you can parry the attack, and how well you can disarm it. So even as a hand specialist, you don't want to completely ignore practicing the other weapon types.

Finally, there are going to be times (for example fighting thieves & assassins) when the best approach is to throw on a couple of axes and bash the little buggers into the ground.