LOL no its not by a long shot..it can only be improved to flawless and daedra can be to legendary and will do 40% more damage
Well, while I do agree Daedric is the "best" it does require 5 perks to do so, and any smith buffs can make any blade just as effective without (later) pointless smith perks. Also the above is wrong, as chillrend can be made legendary.
I use chillrend and the nightingale blade together often. 2 smith perks (steel --> arcane) get them to legendary and then the difference in "attack" power is just extra numbers.