I was working on a build very similar to this (daggers, light armor, illusion, sneak, and conjuration) - was going to make it my first submission.  It was a little bit different, but the similarites really make posting my build unnecessary.  Oh well, nice build, and you've saved me the trouble of having to type everything out.

It takes some practice to get the melee range right with daggers - you have to be very close.  Because of your distance to your opponent, it is more difficult, but not impossible, to dodge your opponents blows; which is what I usually try to do if in light armor.  This may explain why Ponty choose to include block with this build.  And in case anyone is wondering, at the higher end weapons, daggers have the most raw damage over time. 

Valdr's Lucky Dagger fits very well with this build.  The critical damage combined with a sneak attack makes this a deadly weapon (many one hit kills on 'master').  Elemental Fury works with this dagger too.

So why use frenzy when in the middle of melee with the bad guys? I use it from a hidden position and retreat out of sight or go invisible. It works better if you do that.

cool i will try this build next

Mixing shield and dagger is a bold concept, and I wish I had thought on that first. Great character to play, and I can see the game will not get boring, at least not up to level 55 or so, because you always will have to keep focus on the combination block/attack. I just miss some lore to make the build perfect. Anyay, it gets a like cum laude.