My Bosmer warrior currently wears plain iron armor, no helmet, and a Whiterun guard shield. And while he has come across several steel, Orcish, and Elven weapons in his travels, his sword of choice is a simple, non-smithed iron sword that he received in Helgen. He doesn't carry more than a few health potions, and doesn't resort to any magic other than healing spells. I purposefully limit his armor and weapon so as to feel weak in a fight. On Master difficulty, he is essentially a pushover to several enemies and is in constant fear for his life; even mudcrabs show no mercy.
The game has become an incredible challenge and makes me appreciate every victory over my foes. It also just makes the character seem much more humble, as the armor he wears is nothing special or exotic to Skyrim's population, and he doesn't scream "I'M THE DRAGONBORN!" Obviously, in a game that practically throws fancy weapons, armor, and strength at you, it isn't quite as tempting to feel weak, but it is incredibly exhilarating. I was wondering if anyone else plays this way, and if so, what is your setup, and do you even take it a step farther?