Why.... do you have to do this with your magic powers? Why can't I just do it with... you know... my character's hands. The way most people traditionally move things around. Even worse, since grabbing is now a "press and hold" action, it's not like you can do much else while you are doing it and you aren't as likely to do it by accident.
There's no reason for the telekinesis abilities to move and rotate objects not to be the same control system for the regular grabbing mechanism. And I don't know telekinesis. I thought they took that spell out, actually.
Well, if you think about it, you're using telekinesis even when you're not. I mean, your hands aren't actually grabbing the object. Which is why you can't rotate it or hold it perfectly steady. If you go into 3rd person, you will even see the object floating 3 feet from your character!

THough, finding a telekinesis staff is mighty hard. I didn't find the only one I've found until around level 35 or so. AFAIK, the spell is only avaliable through staffs and not an actual castable spell.