I'm having a difficult time finding an answer for this.

1) I understand that levelling up your smithing ability lets you create more powerful equipment? Reassure me that once you're rocking about in full Dragon gear with Daedric weaponry, that's not it? I really don't want to just 'create' the best gear available, I want to 'find' it in forgotten dungeons and abandoned mines etc.

2) Is there lots of unique loot? Please tell me 'Generic lightning enchanted Daedric long sword #7' isn't as exciting as the loot gets? I don't just mean Umbra appearing somewhere either, can you find loot like you found it in Morrowind?

I see many threads with forum denizens complaining about level scaled enemies. This is missing the point, just like the forums did with Oblivion. The main problem factor for continuity is level scaled loot. It's this concept that ruins any feeling of progression. If the loot just generically gets better, ie, Elven fire sword > Daedric fire sword then it ruins immersion. Even more so if you just make it yourself! Where's the mystery and epic adventuring in that!?