It didn't need to be Like Oblivion. and no need to delude yourself that there is a system, it barely passes off as a Dynamic if you look at these factors.
Items only get stronger.
The Material needed never changes
The material has 0 effect beyond just making said item and making it stronger.
will end up being thrown away or sold when something better comes along.
if they paid attention to morrowind where weapon types had different enchantment levels, or added quality to the material you gathered that effected weight, swing speed, attack strenght, special abilities/defense/offense things that amount to more than click click click (the lauded mocking statement against hammers from Oblivion works fine here too) then maybe it would have been a system.
It worked the exact same way in Morrowind. Click click click, there were just multiple types of hammers.
Same with material, they were always like tiers, and even in Skyrim different materials have different weight and thus different attack speed as well.
As for the whole degradation thing... why? Frankly I'm not missing anything, enchanted weapons need charges and bows need ammunition, adding some hammering every now and then adds nothing.
In Fallout it worked as you needed to collect parts to repair your items, this just wouldn't work in Skyrim.