Exploits are meaningless.
If this were a multiplayer game. yes it would be friggen OP, but then again, whats the difference between this, and other 'mmos' where instead of this so-called exploit, and games that require you to 'constantly' upgrade your gear to have a bigger 'epeen'?
Heres another thing.
Lets say you max out all your skills, and are probably around level 70.
Do you know how [censored] you'll be, if you dont' have some of this gear?
Level 70 mobs, even with perks, are going to wreck you, if your using the same level of gear they are! (or there level 5 equiovolents)
That note, I'm not even useing this so called 'exploit' and its not even really an exploit, not liek say, in dark souls where equiping an item, and doing a jig gives you access to infinite souls. This is simply, creating potions, that up your alchemy skill. Then enchanting an item, that increaes your alchemy skill, and rinsing and repeating until that bonus becomes larger and larger, and finishing it off, with a blacksmithing potion/enchant, to doubley enchance your weapons/armor. Thats not an exploit, its just the way the system works. Could gamesas have done it differently? Sure, but they also made players WORK at doing this.
They could have simply allowed Fortify Alchemy potions, to create more Alchemy potions, of the same kind until your upwards of +500% alchemy to create the enchants + the alchemy, ect, ect, ect. By doing what they did, you have to sink far more gold into accomplishing it.