so not only should the armor be rare but it should be more powerful. for instance. your odds of surviving against that main dragon alduin(?) should drop significantly if you don't have higher level armor on. I think this is something that could add to the dificulty, rather than only having the health/damage slider way of raising dificulty. Also this would make the armor in the game more valuable to us as players rather than just how it looks. It would be cool to open a chest or something and be like YES! I finally found my glass boots. Instead of just playing the game through and once you reach a certain level you can pretty much get the complete set of armor with no fuss. Also this would make the perk of all the same armor really powerful and more desireable(?), because ive played through two characters and haven't used that perk either times.
So to wrap up, more rare, expensive, and slightly more powerful. because as of now, armor and weapons for me is pretty plain, and i dont even really think to hard about what im using and they dont feel special enough. even if its plain elven armor, it could feel special if it were much harder to find.
on a side note. im using a named sword in the game and that has vastly improved my enjoiment, i like its power and the way it looks,and i wish they would have more of these weapons/armors, most are not powerful enough, just new look with some enchantment.
what do you think?