Maybe something like, if you play a beast race, they get some extra plus, like.. whatever, you know, something minor. they cant wear boots and full helms, but if they obtain ex. a steel helm or a pair of boots they can go to a blacksmith and "re-build" it for a small fee, and yes it's one of the negatives but they get some minor plusses too. sounds good to me, dont know what you other people think of it though.
I agree I had the same thought, it doesn't make sense that there weren't items specifically made for the beast races in Morrowind, then again, a good portion of the Argonian and Khajiit population in Morrowind were slaves, so that might explain things a bit. but,this is skyrim, so there is no reason why you couldn't take your human boots to a blacksmith and pay to have them made into Argonian boots.