My issue with magic is I need to hold it down to cast any magic. And I mean, throw stones at me all you like as I compare it to another game, look at a game like Fable 3. You could spellweave, but here was the difference. Press you get a Force Ball or Fire Ball or even a crackle of spark. Hold B and you get a much more refined and powerful spell. I thought in some aspects that is what Skyrim was going to be. Press Right bumper throw a fireball. Hold bumper you get a controlled burst of fire. But the whole entire magic system is based on holding the [censored] thing down and it isn't very fun at all. And Conjuration has been destroyed because of this system of holding things down because guess what...I have to hold to cast my spell. And it should be Press Left Bumper, summon creature. Not Hold and hope to god it works.
Yes and no. I like to think of it more as damage over time. Take fire spells for example. You can cast a short blast at an enemy, say 1-2sec for 8-16 damage at novice. However, this also applies a burning effect which increases damage done by fire (maybe per tick, have to read/investigate further.)
So, you can blast an enemy with some fire, set them burning, bash them a few times with a mace while repositioning, then blast them again while they're still burning for increased magic damage.
As someone else said, the perks are really powerful for magic characters. Empowered dual-hand spells, which you can get at level 20 I believe, are really powerful. The first perk in each school reduces the cost of spells in that school level by 50%, and you can get relatively inexpensive "green" items which decrease that by another 15%, and increase magic regen by 50%.
By level 5 I'd say it more than levels out.