Yep, I hate the term progression as to me it stems from the MMO-crowds where everything is a race to get the best gear when you level up.
This way the world will retain its sense of being realistic (in fantasy terms ofcourse) with lots of variety among the common weaponry and armor; while the rare armors and weapons will actually be rare.
So please make Skyrim into a form of 'persistent world' where the focus is on the gameworld and not an 'inconsistent world' where the focus is on the player's level.
I love that. Couldnt have put it better.
When people say "rare armour" I instantly think of silver armor in TES2. I still haven't gathered a full set after over a decade of playing. I once made a poll about it and some people claim to have gathered several full sets over the years, but after all I'm making new characters all the time and that might be the reason. But, you get the idea: thats RARE armor.
My idea of specialization also diminishes the "range" of weapons and armor, making your old gear more efficient when youre grown into them.
The game world should NOT revolve around the player. It should be realistic (in fantasy terms) and the player only a part of it. An insignificant part, if one chooses to! I hated how you were made a hero after 15 minutes of game in TES4. I decide myself if I want to become one, thank you!