That's what you think, and you're perfectly entitled to seeing things how you want to, regardless.
Like I said, the word "streamlining" and its variants tends to automatically mean "less" or like others suggest, "dumbing down" to most people, without a second thought.
I can still see the forest for the trees, and I have no issue. I find that I'm actually spending more time playing the game instead of feeling the urge to min/max my character.
The leveling system was truly horrible in previous TES (I personnally used a home-made mod that removed the multipliers at level-up, and simply gave a +1 to an attribute after five skill-up from skills related to it ; it was, in my mind, much more elegant,
streamlined and fun).
That being said, I doubt you can deny that every single time we hear about "streamlining" in the video game industry, we get a game that has not only the supposed "fat" (which is not always but usually not "fat" but "fluff", and "fluff" is not useless as it improves immersion) trimmed down, but also lots of limitations (because the mass market want "everything right now") and possibilities (because the mass market doesn't like to think, using brains hurts) are removed, so we don't get a "streamlined" but still rich game, we get a showy and shallow one.
Look at Dragon Age 2, Supreme Commander 2, Crysis 2, Civilization V. All these in the past two years. Look how all of them were the successors of games that made their success of NOT being the typical mass-marketed crap you see from everyone, and how they devolved into a thought-less action-packed superficial crap that lost its core depth because they "streamlined" most of the things that required the player to think or act.
It's not that "we" equate "streamlining" with "dumbing down" because we don't understand what the word is supposed to means ; we do it because we just saw first-hand what ALWAYS happens when an editor starts using the word.