I think it would be amazing if you could customize the way you make your armor, like have different types of each piece of armor. For example you could have different designs for each material on top of the quality of the material. For instance the super nice looking pauldron designs are only available to a master smith because it takes that kind of skill to craft them. However once a master smith you could make those pieces out of say rare fine hardened steel, or more common scrap steel. The latter would make a lower quality armor while the preceding material would make a nice suit of fine steel armor.
i'll attempt to draw a diagram of this for heavy armor pauldrons.
Design of Pauldron------>\--- Novice List---------> 0 < Smithing Skill
/ \---Apprentice List------> 24 < Smithing Skill
(Shape) / \---Journeyman List------>49 < Smithing Skill
/ \---Master List--------------->74 < Smithing Skill
Quality of Pauldron
\ /---Ebony------|\
(Texture) \ /---Steel---------| \
\ /---Iron------------| \------->Quality of material------>\---Fine
\ /---Daedric-------| / \---Good
Material It's made of------> /---Dwarven-------| / \---Ok
\---Poorhttp://i865.photobucket.com/albums/ab216/asapp152/diagram.jpg
Basically the design you pick is how the mesh (shape) of the pauldron will look while the material and quality of said material will determine the look of the texture that is wrapped around the mesh. (color, detail). However different combinations will yield different results. For instance you you pick a design from the Novice list and use fine ebony to make it, then it will be good armor but even though you used fine ebony, the pauldron will be bland do to the pauldron's design. Therefore even though the textures applied to the pauldron are determined by the material and quality of that material, the higher grade the design the more intricate and nice looking the textures become. However it works both ways, Take and awesome master pauldron design and pair it with poor steel and it the textures will be comparable but slightly better than if you were to pair poor steel and a novice pauldron design.
Edit: dang, the forum screwed up my diagram and took out the long spaces