I think you're on to something here.
Perhaps using spoons as the lute's ammo? Enchantable spoons of course.
But only if you can dual wield them.
The Bard's college aren't any different from a random dungeon quest. But I have no ideas on what would make them Bard-ey. And what would it contribute to your character? While things like cooking, tanning, and smelting don't contribute to level or skill progress, they do lead to things that do--or in the case of food, it serves to enhance survivability. But what would plucking on a virtual lute do? Would you sing lullabies to Draugr and put them into a Calm state? Maybe you could bore a Dragonpriest to death with a horrible poem you composed.
You can actually learn how to play a musical instrument IRL. And most people aren't familiar with how great poetry can be. Learning about and/or doing these things can actually make you a more complete person IRL. In a video game it's just kind of sad.