This. You powered the skill to make the best armor available, and you're wondering why lower-level armors are inferior gear? This tends to happen when you min/max single player RPGs.
Derp Derp Derp. No. The problem is that the itemization is static in Skyrim. Progression is all out of whack in the game. The only way to increase weapon damage outside of raising your skill (which caps naturally at 100) is through Smithing. Smithing, caps at 100 naturally as well. A character who does not invest in Smithing will not be able to ever get an upgraded weapon tier past Daedric. A player who only invests in Smithing will not be able to ever make anything better once they hit 100 Smithing. To advance your damage further, you must invest in Enchanting. To advance it even FURTHER you have to take up Alchemy. What this does, is essentially force characters to pick up and invest in Tradeskills to see their character progress. That is an issue.
Further, found items will always be inferior to items you can craft. That is another issue. Crafted items should NOT be better than possible found items. There should always be an incentive to dungeon crawl and open chests. In Skyrim, there is not. Weapons and Armor do not scale. Some Unique ones do, except the way they scale in most instances is awkward. Crafted items should be supberb quality, but their draw should be the fact you can obtain them at your own pace and it is not just luck that you find them. The only variance of gear in Skyrim is the level of Enchant on an item. Even that caps out, and a player will ALWAYS be able to place a superior Enchant on their item.
Leveling is underwhelming. Besides access to another Perk point, the only thing that happens is your character gets 10 HP, Magicka, or Stamina. Dinging level 2 is the same as 80. WHAT THE HECK!? Leveling skills raises your level. You reach a point where your primary skills are all 100. If you want to progress further and invest more perks, you have to USE ABILITIES THAT ARE NOT PART OF YOUR CHARACTER PATH! Perks further are GREAT ideas for specialization and progression, the problem there however is that most perks just are not unique enough. Instead, they got lazy and instead they are ranked Modifiers all over the place instead of unique abilities and spells - stuff that truly creates specialization and makes your character control differently from an unspecialized one. For alll intents and purposes, the only difference between a specialized and non-specialized character is the damage dealt or received...Usually, the difference would be what is further in your tool belt. What spells and abilities that you have that define the "custom class" you have made.
This has nothing to do with the derp squad of "don't craft 1000 iron dagger". If you do not understand why the itemization and how progression is handled is an issue, maybe you should stick to LARPing.