I decided to max out my gear but when I stared thinking about it my head almost imploded. Let's start!
So, to max out our gear we need some alchemy perks, max enchanting and high/max smithing (daedric for my warr).
When we get perks we need, we make a nice enchanting potion E1.
1. drink enchanting potion E1, enchant gear set A with + alchemy to make even better enchanting potion E2.
2. drink enchanting potion E2, enchant gear set B with + alchemy to make even better enchanting potion E3.
3. drink enchanting potion E3, enchant gear set C with + alchemy to make stronger enchanting potion E4.
4. .......
If we ever make "best" enchanting potion EB, we will use it to enchant + enchanting on our gear set D.
Then we do the following:
1. drink EB, enchant gear set D with + enchanting
2. equip gear set D, drink EB, enchant gear E with + enchanting
3. equip gear set E, drink EB, enchant gear F with + enchanting
4.......
Then if we ever get maxed out enchanting gear we use it to enchant our alchemy gear and start all over......
What am I missing here?

It's true, but it's really not very fun to play that way. If you approach it like that, you'll probably get bored with how powerful you are. If you gear up in a more natural way and don't treat it like a grind, it's much more fun and rewarding. That's just my opinion, though.

Who cares? Grab a bow and some arrows then shoot some fuzzy critters!
If you need to max stuff with crafting then you can't be very good. My thief/assassin uses the basic Nightingale gear he got at level 20, and now he's running amok in Blackreach 10+ levels later in the same gear.

Think you got me wrong, I do fine with my current gear as it is, I just started theorycrafting and found myself in loop so went here to see if I'm missing some info....
Just to add, thief/assassin comments on gear and not really relevant since you can play the game naked.