Keep in mind the chances are still based on weight/value for the item, so even though you now have the ability to take equipped items, deftly plucking that Daedric war axe out of someone's hand will be... difficult at best. That said, it SHOULD be possible, just most people would rather bury a dagger between their ribs and take the axe off a dead body instead. Less hassle, and less chance of an epic mistake ruining your day.
From the looks of it you can pickpocket everything in their inventory and replace it with a bottle of poison. My first character is planning on being non-violent, but uses the calm effect on aggressive npcs and then steals all their stuff.
Also hoping that when I do this the NPC will realize that they have no means of hurting me and will just leave me alone or flee rather than charging at me with their fists up... we'll see soon, but im guessing theyll charge like stupid animals :/
True enough, but Im thinking it will be real good for taking equipped items off high level NPCS in late game (those you would not fight anyhow like kings, lol).