Also, I was referring to HEALING potions in my original post, not Health potions.
I'm seconds away from death. I look in my inventory and see "Potion of Restore Health". Great! I'm saved! GULP! Insta-death. But hey, my max health jumped up 10 points for 60 seconds!

The designer that made that distinction at Bethesda needs to be beaten.

Pickpocket arrows from guards. Also go to where the guards practice and take arrows from the targets.
You don't even need to go that route. Nearly every NPC has arrows and they weigh nothing. I used to not pick them up until I found that out. Now I have thousands of arrows and every type type of arrow. Just grab any and all arrows that you come across. A single large dungeon can net you more than a hundred.