Is it possible to use the 360 controller and use the Number keys on the keyboard to quickly change between bow and arrow and SnS?

It doesn't seem to be possible because as soon as you switch to controller to keyboard/mouse the hotkeys get erased. You can hold the left or right D-Pad buttons in the Favorites menu to assign quick-swap items, but it's kinda limiting to only have two.

I am wondering the same thing. I have only been able to map 2 things to the d-pad. This change in the game requires too many pauses now to heal and select poisons. I thought about trying a keyboard to gamepad mapping utility but saw no option to disable the controller. I know Pinnacle allows you to map 8 keys to the d-pad, which would make the game feel more like Oblivion, but not sure if it will work.