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if you improve it a lot, that is high smithing and decent smithing gear it does not matter much that the base damage is and the enchantment do little damage compared to the physical one.
In this case you would want to stay away from the nightingale gear as it does not get benefit from any smithing perk so even the level 46 gear would be weaker than steel or elven.
Self made gear has always been better in elder scrolls with a few exceptions.
It is not about if it is good enough or not - it was never about that. It's not all about the sum of numbers. It's about collector value. And, simple put, the lesser version of a unique artifact has very little collector value. So, from a collector's point of view, it's pointless to get them until they reach their max level.
Self made gear being better is not necessarily bad, but when it is so easy to get it (read: you never have to leave whiterun after level 15 or so and you can still get the best gear in the game) then there is a problem. A big problem. Because you don't have a reason to do anything apart from the few major questlines (which are actually anything but major in size). Why go raid a dungeon - a few self-enchanted daggers will give you more money than any dungeon, and 20 times as fast... self smithed-enchanted armor is 10x better than anything you can find in a dungeon. Who needs items of the daedric lords themselves - the weapons and armor I make are so much better that Molag Bal would run away screaming if I ever stepped into his realm.
Skyrim is doing it's best to be both an RPG and an adventure game, but it kinda fails. It does have the big open world to explore, and madeit beautiful and all, but it's a pity that the gameplay is bad and gives you no reason to explore it. From an RPG point of view, there is nothing to gain from venturing out in the wild. From an action point of view, the combat is not good enough to keep you going down the same generic and linear caves/tombs/ruins, fighting the same bandits/undead/creatures/automatons... It's overal enjoable, but gets old really fast, once you stop being impressed by the world...
Item leveling kills a large part of the RPG value, at least the way they implemented it. Imho, for their next title, they should stick to focusing on either rpg or adventure, instead of trying to balance things, because it's obvious that, with the current team and time restrains they have, they can't do both...