The way Oblivion worked is that items scaled solely on level. You wouldn't find any daedric items at level 1, instead you'd find steel or iron items at best. Yet, daedric shrine rewards didn't scale. Also, certain unique items that were quest rewards, scaled to level up until a certain point like around 20-30, making you think twice before completing a quest with a really cool looking unique reward. Now, what if, to an extent of course, the same type of looting system that Borderlands has was added? I'm talking rare types of items. I know Oblivion had something like this where you'd sometimes find enchanted items if you're lucky, but what if they took it a step further and allowed rarer versions, so that the rarer it is the more durability it has as well as the more damage / protection it has, maybe even a different colored item all together but with the same type of material.
Thoughts? Opinions?
I personally like this idea, otherwise why would I make a thread about it? But I can see where others would be against it in that items are manufactured the same way, why should any two items be significantly different unless enchanted by the previous owner?