I don't think you guys understand where Bethesda is coming from, and I don't think any of you ever played Morrowind heavily enough to know why Bethesda wanted to change their old system in the first place...
Level scaling is fine to a certain extent. I still don't really like how it's implemented in Skyrim, but at least it's miles ahead of Oblivion. Morrowind still did it better, but once you knew where to find stuff it became to easy to obtain. It's a very hard balance to achieve, really. And it's impossible to satisfy everyone.
They certainly need to rethink crafting and add diminishing returns, preventing low level crafts to level you to level 100.
This is why.
In Morrowind, once players knew of locations of certain high level gear early on, or knew how to get past certain high level areas easily via exploits or tricks (which are inevitable in a large game like this), then players would easily be able to get high level loot early on. I love how you guys say that exploration isn't rewarded when loot is leveled, yet you don't realize that once you get high level gear, exploration serves no reward either - because you already have the loot. When you know the location of uber gear early on and can get to it easily, it unbalances the game in your favor and suddenly exploration means nothing.
However that's not to say that Bethesda's current method works great - it IS very artifical and it svcks going through a dungeon, fighting a master vampire and opening his master lock chest with a key only to find 100 gold and an eleven helmit inside.
I think the best route to go would be to make it so it's a combonation of the random nature of the current system, and the hand-placed nature of Morrowind's.
For example, when you start a new character, have a set number of high level loot/rare items placed throughout the world in random locations, dungeons, powerful NPC's homes, etc. Then, as you progress through the game, you may or may not run into these special artifacts. Have some hihger-level radient story quests take you within the vincinity of these things too so players can at least get a taste of this "uber gear".
Such as, think back in Morrowind how hard it was to get a full set of Daedric Armor. There was only one full set in the entire game, and the last piece of it (it was the boots or the gauntlets, I don't remember) was on a high level NPC that also happened to be a major character in the main quest (of course you could kill mainquest NPC's in morrowind, but you'd get a message that you've broken the thread of prophecy and that you should revert to a previous save). So, it was really really hard and rewarding trying to find and get all the pieces of the Daedric armor, which was brillaint. Only issue? Once you knew where the pieces were it was "easy" to get at a low level, sans the NPC that was wearing the last piece. My idea is to do the same idea for high level or special loot, except randomize their locations, NPC's that use them, and quests that involve them from when you first start your character. Once you start a character and the game has placed "legendary" loot around the world, they are set in stone.
Of course this doesn't solve the issue of low level players being IMBA with such loot. In this case, just make it so you can't properly use stuff like Daedric Longswords unless you are within a certain skill threshold. Nothing artifical - make it so the weapon is powerful and damaging, but slow and clunky to use, and only have a fraction of the damage potentual a skilled user would be able to use with it. That way if you find such loot as a low level, its better off to store it away for when you can actually use it better later on, or to sell it for tons of gold. Or you could play around with it, but you'd probably not want to use it for serious fights due to how hard such weapons would be to use if you are low in skill.
Dark Souls (the game) works very well in this reguard - you can use most weapons as soon as you find them, but certain heavy items like higher level greatswords are VERY hard to use if you don't have the minimum requirements in skill met for using them. You'll swing your sword around but your sword around quite clunkily and it leaves you very open to attack, even though if you do manage to land a hit you'll do tons of damage. It's quite brilliant, and IMO has one of the best combat systems in any melee RPG ever made.