I really dig this. The variety of instruments you used makes for a creative, unique, and excellent piece.
My favorite was the xylophone (Chimes?) near 2:05, as they gave an interesting perspective to the song and made it seem almost like a Synth filled Caribbean song. This assortment of instruments I believe is also why it did not pair well with Skyrim.
Being an avid TES fan, this seems very out of place for Skyrim. This piece brings to mind visions of an ocean in space, not a medieval world where magic runs amok.
My Prescription: Keep experimenting with the different instruments, it certainly makes cool pieces such as this one! However if you're trying to achieve the Skyrim affect, I would suggest using instruments such as the Lute, Mandolin, perhaps strings and an Organ if you feel like adding an eerie atmosphere to the piece or Gothical tone. (Hopefully this all makes sense, I'm no aficionado in rating.)
Although this may not get put into a Skyrim mod, I can hope it will be put into a NG game!