In Skyrim, what is the point of placing items into other people's inventories (reverse pick-pocketing)?

So in pick-pocketing, you have the option to steal from somebody's inventory, and/or place something into it. Outside of leveling exploits and quests, what function does placing actually have? Can you use for stealth kills or something?

Solution 1:

Another lesser known use for reverse pickpocketing is to remove the stolen flag from items.

If you reverse pickpocket a stolen item onto someone and kill them it will no longer be considered stolen.

Solution 2:

Yes, you can poison people by placing poison into their inventory.

Reverse pickpocketing a poison using the Poisoned perk does not count as a crime, even if the magical effect of the poison (e.g. "damage health") would otherwise be considered a criminal act if applied any other way. This makes it entirely possible to kill or weaken innocent enemies, right in front of everyone, without incurring a bounty (unless you get caught, as noted @Kevin).

Also, reverse pickpocketing a paralysing poison into your target's inventory and then pickpocketing them as soon as the effect starts to wear off allows you to take any item without being caught, no matter the chance of success.

Solution 3:

If you reverse pickpocket fancy arrows onto an archer (and take his lousy arrows) who regularly practices his archery, you can get an endless supply of that type of arrow from his archery target whenever he practices.

Solution 4:

If you reverse-pickpocket equippable items, the NPC may equip them. This is useful if you have an unarmed follower who refuses to trade with you, like Maurice Jondrelle, who appears in the Blessings of Nature quest. If you reverse-pickpocket a sword and some armor to him, he has a better chance of surviving the quest.

For that particular NPC, the Elder Scrolls Wiki says that you have to reverse-pickpocket him before you talk to him for the first time, or it won’t work.