Your ideas about "ideal" difficulty are different than the designers'. Not every game's difficulty settings will satisfy every player. That's just a fact of life.
(Plenty of games out there that people decide to try additional things in order to gain "extra challenge". See: speed runs, Diablo 2 "naked" runs, Doom -only runs, etc, etc, etc.)
It's Design 101 to balance the game with the mechanics you include in the game.
Becoming "overpowered" is a form of balance if it is made temporary, like the BFG in DOOM or the Super Star in Mario.
Skyrim kills that "overpowered" form of balance by putting no restriction on it. You can literally practically break the game around level 30.
Those games you mentioned are all balanced, they are also mostly based on physical skill. DOOM is a physical skill game, Skyrim... not so much.
scuttlebut..? what does that even mean? is that a user? a dev? give some more information. and I already agreed with you that getting smithing to 100 via daggers is really op..no one has ever disagreed with that, i can't believe beth let that one ship..
Scuttlebutt is a term akin to "word on the street."
Many, many threads have covered the crafting skills being "abused," which puts them in the category of "exploits."