And Dwarven armor is made of dwarves. http://www.uesp.net/wiki/Oblivion:Manual_of_Armor
Apparently, there are people out there who mine "elven" and "dwarven", and bring the raw elven and dwarven to blacksmiths who can then forge this elven or this dwarven into armors and weapons.
:rofl:
Does this mean orcish armor is made out of orcs as well?
Can we also assume that Indoril armor is made out of members of House Indoril? And Dark brotherhood armor is made from actual Dark Brotherhood assassins?
I'd say that book is a pretty poor representation of actual lore, though, it doesn't explain anything about the origins of the materials, or their properties, and the author (The Bethesda employee who wrote it, that is, not the unnamed writer of it in the Elder Scrolls world.) seems to assume that just because many armors in the game bear the names of the materials they are made of means that the names of all armor types must be the material from which they are made, not to mention what it really is seems to be a brief in-character explanation of game mechanics.
As far as I know, there isn't much information on Elven equipment.
I believe this is indeed the case, I suspect that elven armor and weapons are made by Ayleids, though, some of the Ayleid artifacts in the game do look a lot like elven items, and of course, there's the Ayleid statues in the Thieves Guild quest, not to mention the design of the elven armor and weapons seems to be sort of compatible with the Ayleid sense of aesthetics to me, not to mention with all the Ayleid ruins in the game, it would seem rather odd if there isn't at least one type of item of Ayleid craftsmanship.
As to the material they're made from, I can't guess, it's obviously some kind of metal, but in a world like the Elder Scrolls full of crazy fantasy metals used to make armor and weapons, it's kind of hard to guess what kind unless the game tells you.
Actually you don't even need the CS. You're given a full suit of either Golden Saint or Dark Seducer armor depending on the path you take in the game. I think the real reason the devs didn't always let these armors and the armors of Dremora be lootable is game economy balance in the early levels. Players under level 12 could have been raking in thousands of Septims for every Dremora they killed, and that would have made them able to purchase the most powerful armors and weapons from the various Smiths and other enchanted items from other merchants way too early in the game, making them essentially overpowered.
I don't think game balance would be too much of a problem, since the unplayable armors used by lower level Dremora in Oblivion are probably actually weaker items that just look like Daedric, just as their shields and weapons are. Only the most powerful ones seem to have real Daedric armor, and it seems plausible that in the lore, they could actually be given real Daedric armor (After all, Dremora often had Daedric weapons in Morrowind too, though obviously they wouldn't have Daedric armor which could be looted as they were considered "creatures" by game mechanics, and therefore could not wear any armor or clothing that was not part of their model.) but lower ranking ones would not have access to such powerful items, and either use replicas, or just take on forms that make them look like they have Daedric armor, I don't think the game mechanics should be trusted to answer this question, since gameplay often does not accurately reflect the lore, given that with the former, designers must think about what makes a fun game and what the engine can do, with the latter, designers can just focus on what would make an interesting story.
Of course, some can argue that the lore Bethesda writes doesn't always make for a good story anyway, but I never did say that just because designers can focus on something means they will achieve it.