It's viable, you have plenty of ways to make it so and plenty of options in game to add extra damage or survivability when not sneaking. Things like absorb health/stamina, poisons, paralysis, reaching armour cap, shouts like elemental fury, marked for death, disarm, slow time, cloak spells, standing stones like serpent for instance, black books like secret of protection, and I'm sure there's more things in game to help. As for races, they can help with their racial powers also - Redguard, Adrenalin rush for stamina regen and more power attacks, could combine it with elemental fury and go all out power attacking group of enemies until durations are over. Argonian, Histskin to regen health faster while fighting enemies using daggers. Orc, Beserker rage to double your damage and reduce what your receiving at the same time. Nord, battlecry to make enemies flee if things are becoming to much to handle and you need that emergency power.  Imperial, voice of emperor to calm enemies in an emergency. Dunmer, ancestors wrath to cloak yourself in fire and add extra damage while up close.

I was going to say that chest lol 

oh, that's a shame 

That could be a nice combination, if it can do the energy blast with elemental fury 

yeah such a shame it isn't better stat-wise and such an hassle to get dreams all time, especially being a daedric artifact it is quite underwhelming. But I have to agree on the looks, It's the best looking staff in the game imo.