1. It makes perfect sense, you think someone won't notice they are missing something and be more mindful of their pockets? Also you can pickpocket quest items and other useful things, so it's far from useless.
2. Yeah, isn't that kind of the point of a dagger?
3. Bows and Crossbows, just like melee, complete outperform magic later in the game with the correct builds, not to mention that you can have access to a projectile of ANY element without needing a spellbook and point investment. Not to mention how outstandingly powerful a Guerrilla sneak attack with a Crossbow is.
