While I agree that this skill is useless in terms of hunting, it's worth to mention that you can have some fun with it. :)
I used to train fist fighting on two monks like 3 years ago, as I wanted my shielding skill (which is lower due to using 2-handed weapons) to catch up with melee skill. I had no problems with killing dragons or giant spiders with fist and healing spells only.
My greatest achievement was to kill a wyrm - it took 22 minutes.
I can't remember well, but best hits were in range of 70-80 (overall, not on wyrm, as it has high armor comparing to for ex.). Of course, level is very important in terms of damage. My lvl was 343 when I beat this wyrm to death. Now, on lvl 400 my hits would be a bit higher.
Additionally, if you like RPG style of playing fist fighting surely may come in handy.