You could easily get Steel Plate to reach the armour cap with 100 Smithing. A Steel Greatsword will do a healthy amount of damage once upgraded at 100 Smithing.
With 100 smithing and advanved armor tagged & 100 heavy armor with 5/5 juggernaut + well fitted and matching set, the armor rating will be 603. A teensy bit above the cap.
When improving armor and weapons, the bonus they get is the same no matter the material (half bonus if you don't have a perk in the relevant material).
A daedric greatsword's basedamage is 24 while a steel one does 17. The delta will never change (again, assuming you have the relevant perks). If you smith your daedric sword to do a million damage, the steel one would be just behind.