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Whenever I'm sneaking around or sniping from a distance I play in first person. I use third when travelling and in open combat with multiple enemies. That way, I have a better view of everything that's going on.
3rd person for traveling, view my armor and melee combat. 1st person for ranged combat and precision. I always feel that 3rd person aiming is a bit wonky, like my arrow goes just right or just left of the target.