That's how I prefer it, and that's how I'd expect a human game master to do. He wouldn't allow someone to become overpowered for his level. Only thing, I would prefer a huge list of "random names" that named these items, so that it would be hard to find the "same item" in two successive gameplays.
There's so much wrong with your assessment that I think I'm going to be sick.
Just a few points before I vomit uncontrollably at your comment
1. No reasonable item in the game is overpowered, no matter what level you get it. A Daedric Sword has 14 Base damage before modifiers, An Iron Sword has 7 Base Damage.
2. Scaled items are automatically pointless regardless. If you get them beyond the highest leveled list, they are phased out extremely quickly regardless.
3. If people want to go and find a High-level item early on, why shouldn't they? It's their choice, it's their game. Arguing against this is doubly pointless as long as exploits exist anyway.
4. High-quality items can be protected by smart level design (Nonscaled enemies). If someone can fight their way through it, they earn their item. If someone cheats through it, that's their call.
In summation: Your lack of willpower is no excuse to shackle gameplay elements artificially, thus creating a world devoid of believability.
Need someone to do a mod like was in DA2, witch would levelup your Equipment when you level up.
Because Skyrim totally doesn't have Smithing.