It's a good thing that smithing and enchanting is relavent, compared to the best items in the game. Otherwise why bother? I think it's good that it's at least as good, if not better than the best items. This is just a case of "different doesn't mean better". The special items in the game are unique, and you cannot make them. The unique enchantments are good alternatives, despite the item being less powerful. Know what I mean? You sacrifice some Armor Class or weapon damage for the [sometimes] better, or more useful enchantment.
I think the balance between the two is perfect. Especially because not everyone puts a bunch of points in crafting.
As a side note, I do think that smith improving is overpowered.
Regarding loot, I would like to see very rare item drops. I personally don't "farm" creatures or read hint guides, so it would be amazing to find something really rare (and powerful) once in a while, and have no idea what the conditions for the drop where. I also am partial to magenta.

Also, people claiming to find stuff in shops, like Deadra hearts. I have not experienced loot showing up at vendors until I have already come across them in the game world. For example, once I have found gold ore, vendors will start carrying it. Once I've found a daedra heart, vendors start carrying it. It's quite simply a good idea by Bethesda. So, I don't know if you are mistaken, or if it's just my game. No way I will find ebony armor at a shop until I have seen ebony armor in game already.
Semi-related, there's a particular vendor (no spoilers), that carries far too good of loot. Better than the stuff I've ever found, and always has a lot of it. Very bad for gameplay, hope it's just a balance issue, and not by design. It's either the drops svck and need to be improved, or the vendor needs to be nerfed, in my experiences (~1000 hours). EDIT: I suppose they should be equalized. So that yes, you can buy great items occasionally, but you should also be able to find them occasionally. If shops didn't have anything worthwhile, gold coins would be useless. But if drops svck, it's just less exciting and motivating for dungeon crawling.