Allow me to explain. Ruins of Kemel-Ze states, unequivocally, that "Dwarven armor really is ... just the armored shells of ancient mechanical men." Marobar Sul's Ancient Tales of the Dwemer, Volume 6, The Chimarvamidium, tells of how the Dwemer, disguised as golems ("ancient mechanical men") were able to trick the Chimer. Taken together, it provides the perfect explanation: those pieces found in Dwemer ruins were golems, either half built, used for disguises, or already destroyed. Later on other races used both the pieces left behind by the Dwemer and those they themselves salvaged as armor.
Of course game mechanic (cursed be its name!) plays a large role as well. Obviously the ornate armor found in Oblivion was first designed for Morrowind, but because of some reason it was not included (mayhaps they did not see the point of having two sets). Since all Dwemer artifacts are property of the Empire, it makes sense that the rarest, most valuable Dwemer armor ended up in Cyrodiil. What does not make sense is that every brigand would be wearing it, but that is where game mechanics kicks in. Logically, original Dwemer armor (or highquality replicas thereof) is only found in the collections of nobles or in the possession of great warriors. We can safely ignore Oblivion's depiction and go with the above.
Kemel-Ze however doesn't say that they're made from scap-metal. Also, if you cared to finish reading Chimarvamidium, you'd find it state that the 'golem' was probably just somebody in heavy armor, and that since heavy armor was new at the time it appeared robotic (the Chimer had never seen full-body armor and mistook it for a golem). Chances are that the writer of Kemel-Ze was using non-Dwemer accounts to come to his conclusions (since there really are few Dwemer accounts), meaning that his primary sources from the Dwemer period probably similarly mistook the armor for 'mechanical men'.
And either way, you're quotes don't prove that Morrowind's armor is made from scraps, but just that it was the Dwemer's form of Power Armor, meaning that its still real Dwemer armor.
:woot:
Its from Chimarvamidium, the same source Ayaan-Si referenced: "It is only unfortunate that it resembles a Dwemer instead of one of our own". :deal:
:turtle: