I agree, we should have had Bioshock level telekinesis as an Expert level spell and keep minor telekinesis as it is. Mods will fix this eventually, as they did for Oblivion telekinesis. Midas Magic has a force push spell that is essentially Fus in spell form, so it's conceivable that more force spells will be included in that mod, possibly psychokinesis as well.
I'll note that objects your throw with your telekinesis spell will hurt people, just not very much. IMO, the amount of damage dealt by stuff you throw is appropriate for the level of the spell and its manacost.
I thought this as well, but it really doesn't do enough damage to be useful in combat. Doesn't matter what you throw either, swords and cups do the same amount of damage, a miniscule amount. You can piss people off with it, but that's the extent of it's combat use, it only does a sliver of damage even to non-combatant villagers.