Psijic Order: "Oh, no, this is too powerful, we're going to have to take this away from you."
(1 hour later)
Dragonborn: *finds Elder Scroll*
Psijic Order: *does not care. at all.*

LMAO Another day in the life of the Dragonborn. Who can do no wrong... hahahahaha

Don't forget about the fact that none of the Daedric Artifacts are viewed as too powerful for you by the Psijic Order...

The eye of Magnus is a relic of creation, something similar to the heart of Lorkhan. It's a far more powerful artifact than an elder scroll or a daedric artifact. Look at what happened to the Dwemer. They tapped the power within the heart and vanished from this plane (intentionally or not, the matter is open to debate).

I love how the Psijiics just walk in, steal confiscate the Eye, and appoint me as Archmage without consulting any of the College staff... and no one questions it at all.