I've found that now I have this amazing ability to turn as I please I tend to turn when in combat rather than use human form to fight, does anyone else think its a good thing or slightly distracting?

Depends on how you represent yourself. I feel like i am no longer my character anymore but rather the Vamp Lord himself and sometimes that isnt right. I often feel like i dont need to sneak around and slit throats and i think i would rather do so. So i use the form on some characters more than others

I mix it up a bit between stealth, mage/summoner and Vampire lord, variety is the spice of life.

Not really. I tend to only use it on lesser fights....

Fighting a legendary dragon in VL form is just silly, at least on master difficulty.
However, bandits, forsworn, sometimes dawnguard, and various critters - I generally TRY to fight them in VL form, to get the life-absorption's.

You could play relatively the whole game in VL form if you wanted, so it depends on what you want. My Argonian Vampire Lord, Cytus, finds himself shifting into it because he has no desire to control his bloodlust or restrain himself. Still, he will fights in his "normal" form if he feels like toying with his prey rather than obliterating them.

Wish it was like this with the werewolf... Werewolf you can't use spells, loot or anything so pretty much I clear a dungeon then on my way out I eat the dead as the werewolf. I'm gonna have to try the VL. Never even been a vampire before.

It's basically the same as a VL, except you have to actually kill the enemy to get the perk progress....so it's more like, clear the dungeon AS a VL, then go back after and unlock all the chests / loot everything. Unless you want to sit through an animation every time you kill someone.

Deimos only becomes a vampire lord if its a desperate situation.