Forgive me if i'm missing something or being ignorant, but what makes you think the crafting techniques arent sufficient? Theres quite a bit of proof that they are advanced (armor made of glass for example). And why not block with weapons? They arent feeble, all swords are obviously expected to take impact, by your logic you shouldnt be able to hit an armored opponent either.
"glass" in the game refers to a metallic ore on Tamriel. And no, swords aren't expected to take an impact, they will likely shatter under the impact of another sword striking it. It depends on the quality and construction of the material, as well as the construction of the sword blade itself.
As for metallurgy, the processes of creating excellent steel requires precise measurements and tools. You need to burn off impurities from the iron ore itself, control the amount of carbon in the metal (too much and it becomes very brittle. Only 2% is needed for steel), and make sure you don't introduce new impurities from the fuel being burnt to provide the heat. I won't claim to know intimate knowledge of smithing, but probably know more than the average joe or jane.
Full plate armor did not occur/gain prevalence in Our World until around the 1400's. It's really complex stuff, too, with a lot of hinges and joints to make it surprisingly flexible.
Yeeaaaaa... about http://www.youtube.com/watch?v=HjMW5qenYyA
Metal weapon on metal weapon shatters - unless the sword is http://en.wikipedia.org/wiki/Damascus_steel, or a similar process (as was common in Japan) to strengthen the metal against shattering on impact. There has been no mention of this forging technique in TES Lore, and the lack of the waved/grained appearance on blade textures further emphasizes that the technique is either not known in Tamriel, or its knowledge is limited.