I see quite a lot of economy balancing mods on PES, so I thought I'd ask you hardened modding veterans.
To be more specific, I have just played a game where I thought I'd try to exploit the economy as much as possible to see what needs fixing. I know one could simply refrain from using these exploits... but I'm just not the kind of person to do that. Gaining power is the biggest fun for me in RPG games so it's pretty obvious I'll be choosing the quickest way possible. In fact, discovering these ways is fun to me. But it comes at a price of total boredom. I am using Galsiah's Character Development since I absolutely can't stand the original leveling system.

1. Ordinators. My most common trick is to visit Alusaron in Vivec, flash his guardian Ordinator with an Indoril mask, kill him, sell his gear to Alusaron and then to other people, return the next day, sell more stuff. Soon the Ordinator will reappear, allowing me to keep milking this eternal gold cow of Medium Armour goodness. This IS boring but also temtping.
I have nothing against House Indoril sending new people, but maybe they should send more, seeing as how one of their guys was just killed?

2. Reporting Vassir-didanat. Oh, thank you mister Bero, I don't mind receiving the most powerful unenchanted weapon in the game right at the beginning for a task that a 3 year old could accomplish. Got any more? No? OK.

3. Stealing with Invisibility and/or Telekinesis. The most expensive stuff I've found to steal is alchemist equipment... but why do they NOT notice it missing? A guy walks into the shop, suddenly vanishes, a few seconds later their grandmaster's mortar disappears, then the guy reappears, thank you, have a nice day, hello 3000 septims, whhhaaaaaAAAT.?

4. Ibar Dad. There are probably more, I havent really explored a whole lot of caves in Vvanderfell because I would just feel sorry for all the peons I'd be killing with my 15pts/sec health regeneration and my enchanted axe dealing ~150 damage per hit (all this with just a lvl15 PC!). Anyway- once again thanks to a bit of Invisibility (this spell is really overpowered!) you can grab a LOT of awesome loot VERY quickly. Considering the guards, that should NOT be possible in any way.

5.Mournhold. Okay- I already know the mod that starts the Tribunal quest only after finishing the main one. Still, wouldn't it be possible to allow it sooner without breaking the economy even more? (I'm talking about the merchants with 10k septims reneweing every day).

6. Enchanting. No, selling stuff you've just enchanted is perfectly fine with me. BUT: Ring of Extreme Enchantment- an exquisite ring with a 3 sec bonus to the enchantment skill of ~480pts. This costs me ~90k septims. And what's even better, once I create it, I can easily get all the money back from the enchanter, because he will gladly buy tons of regular armour for all the money I've just spent. AND NO, making him only buy enchanted armour would not fix the problem, because even a beginner can easily enchant everything with a 1pt spell.
So the only problem is getting those 90k septims, but that's hardly a problem at all.

7. Once you have two of such ring, even a 225pt constant effect enchantment is a piece of cake to you. You know what this means.

8. The museum. Enough said.

My idea of a balanced game is that even as the game is nearing completions, the player that has been trying his best to build the most powerful PC possible should still have considerable problems with defeating the most powerful enemies in the game. Right now my lvl20 PC can kill Golden Saints and Ascended Sleepers with a few hits with no risk of even a small scratch.
And just to make sure this is clear- simply making good items only appear as I level is a horrible idea to me. The daedric/ebony stuff SHOULD be there, even randomly generated, but its guardians should be impossible to defeat/circumvent unless you're a suitably experienced PC.

BTB's Game Improvements

The daedric weapons that were 120k are now 2500. Try getting filthy rich off of that. Also, skills become super hard to aquire (if they are not your major/minor skills) because they don't level unless you pay trainers to level them. I believe he also prevented you from being able to enchant items with certain types of spells (jump for one).

That should be a good start.

You sound like a prime candidate for my mod.

Yeah, BTB's mod will be right up your alley. Make sure you check out the various readme files. I'm not sure if he touches Vassir-Didanat or any cells at all, though, and I am aware of how extremely unbalanced that "quest" is.

Bero's reward is hardly unbalanced. You get an appropriate reward for the information you possess, which is incredibly lucrative.

If anything, I would feel rather cheated if I received any reward that was less than daedric.

It's only unbalanced in that you are aware of it from previous playthroughs, but that's hardly the game's fault. The quest was made sufficiently obscure, after all, and required you to make a thoughtful and cunning decision of deciding which buyer could give you the highest price for your information.

TLDR: BTB's mod satisfies the problematic nature of ridiculously overpriced daedric.

I love BTB's mod! I'm glad and thankful he continually updates it.

I meant it's unbalanced in gameplay terms, I'm not saying it doesn't make sense in terms of story. And yes, it's only "unbalanced" if you know the ins and outs of the game well enough. As it happened, I was responding to someone who knew about the quest so it seemed natural to me to bear that in mind when I responded. I think most of us will agree that making little discoveries that lead to a big advantage is a huge part of Morrowind's charm, but in the context of people who know all about the quest I think it's not irrational for the concept of cutting back on the phat lewt to come up.