Okay, all of a sudden while I'm in a dungeon roasting some Draugr, my fireball starts doing noticeably more damage. I pop into my magic screen, check the spell, and lo and behold, the damage of all my fire spells (except for Fire Rune, Flame Cloak, and Wall of Flames, which cannot have their damage boosted by anything anyway) has been bumped up by about 12 points. It's as if I had taken the second rank of Augmented Flames, Which I have yet to do. I stripped off everything I was wearing, and the damage stayed boosted. I checked my active effects page, and I can't see any reason for it being boosted. I don't know what's going on here, but I like it.
Come to think of it, has anyone else seen the loading screen tip that says something like "Magic spells will only improve when used against valid opponents."? That one always confused me, but maybe your spells improve with use? If so, I will officially kiss Bethesda's feet.