that's your opinion. My opinion is it would be a cluster [censored] of crap we don't need. The system as is work fine. There's a reason why you very rarely find items better than ones you have currently equipped: You are a master of your crafts. What are the odds someone else has the same level of skill as you? On that note: what are the odds that person is jacked up on smithing potions and enchantments as well? I don't see how that's hard to understand.
Not all characters become master smiths, an anyway it's plenty of stuff who can't be crafted.
The loot system is based on that the enemies are actually wearing who is an cool feature, pretty stupid with wolves dropping armor in other games.
Note that the majority of the loot you find in any game is worse than the one you have as you only use the best.
Only way to get around it is that only bosses sometimes drop gear.