I had never considered putting barrels in a backpack. Telekinesis may be stronger than I first imagined.
Yeah, it seems that the only limit on telekinesis' damage is the amount of weight you can carry. With 15 strength and Packmule, I believe you can carry 410 pounds. Of course, some of that will be equipped on you, but basically you can get ~400 damage for a 2 AP attack that you can do at a decent range and can sometimes hit more than one enemy with. Any +strength items would increase this even more. I have not actually finished the game, so I am not sure what other builds can do at late levels. My impression is that that is only okay. You could always transition to being a normal 2-hander near the end of the game, though. You won't exactly have devoted much into telekinesis, so you won't really be gimped as a strength-based warrior.