So after tweaking the ini to remove the compass, disabling the crosshair, setting HUD oppacity to 25% (only displays the text when mousing over something, as well as health and stamina bars when I'm getting owned) I gotta say - wow. In my opinion it's so much more immersive (sorry if that sounds cliche).
It's a lot easier to appreciate how stunning the enviroments are. I first tried this out in The Rift, near some Dwemer ruins and it's made all the difference for me.
Anyone else playing sans HUD?