Youre all making it too complicated. Its not the daedric weapons/armor itself, its not the ease of leveling smithing or anything else. Its the stupidly high fortify smithing coefficient from enchants and pots. For example before upgrading my daedric swords they had something around 90dmg (i dont remember exactly) after upgrading they have over 250 (i didnt even use the best blacksmiths potion, just some weak 20% i think, same with enchants). I imagine that if you get the best potion and best enchants you can easily go over 300dmg. So the fortify smithing coefficient while doing upgrades is like 200% or something. Just nerf it to the ground (enchants and pots) and make it 20-30% at best. Maybe nerf the basic upgrade too (i have no idea how high is it so i say "maybe") . Problem fixed.
Also the "just dont abuse it" argument is really dumb. For example i didnt know that its considerd op before i staretd playing (hard to know if youre playing since day 1). I picked my usual rpg character: heavy armor, sword using berserker. Crafting materials started stockpiling and it was pretty natural to level proffesions, at 24lvl i had over 80 smithing and enchanting, without any sort of powerleveling. Im pretty sure that many ppl did it too without knowing. And what am i supposed to to now? Use some un-upgraded dwarven swords? Thats just funny.
Your waaay off stat wise. Just for giggles, heres the absolute best heavy armor/one hand weapon stats you can come up with (legitly). This is using max everything. 535 damage on the sword, and this was before I enchanted it.. but the enchants make little difference when it one shots everything as-is.
Absolute best "legit" armor/1H weapon: http://img171.imageshack.us/img171/5541/wtftct.jpg
(I forgot to include shield in the picture, but it's just as overkill)
If people don't see the problem then they are in denial. It's a huge problem. Fortify smithing/enchanting needs to be greatly nerfed (50-90%) this includes pots and enchantments.
For anyone wondering this is 29% alchemy/29% smithing sets... used to make 130% smithing potions.. and I forget the exact % for enchanting potions (49%?)
I keep asking, but why do you care what random gamers you don't know do with the game?
It's not THAT easy to level it. Finding that much iron or buying that much iron takes a lot of time and money. And leather strips.
No it doesn't! The NPCs carry TONS of it. I had max smithing a few hours into the game just by buying iron/leather whenever I had money. I had no idea this wasn't "intended", as I stated above this came as comment sense to me as I generally play as a min/maxer... though i've never seen a game allow me to become this overpowered just by playing "the strongest way possible".