If you don't know what that is, it's when you get Alchemy, Enchanting and Smithing all to 100 (preferably for best results) then you make a Smithing set of armor + jewellery and a set of Alchemy. Then you use Alchemy to make Smithing potions then pop that potion while wearing your Smithing gear then make your beastly armor + weapons that you will be using, THEN you enchant that gear with Enchanting potions.
...or something like that...
Sorry, but the procedure you describe is
not a loophole or an exploit. That's just "having skills maximized and using them".
It becomes a loophole when you either do the restoration glitch or the fortify enchantment loop.
The restoration glitch means: Enchant a set of Fortify Alchemy gear and wear it. Brew a potion of Fortify Restoration. Drink it. Re-equip your Fortify Alchemy gear. Make another potion of Fortify Restoration. Repeat until the amount of Fortify Alchemy is absurd. Then brew a bunch of potions - Fortify Enchantment, Fortify Smithing, and a bunch of normal potions like Restore 2000000000000 Health and the like. Do with these overpowered potions whatever you like.
The fortify enchantment loop means: Make your set of Fortify Alchemy gear again and wear it. Create 5ish potions of Fortify Enchantment. Use them to make another set of Fortify Alchemy which is slightly better than the previous one. Make another set of Fortify Enchantment potions and repeat the process. After quite some time, your Fortify Alchemy will be as absurdly increased as with the Fortify Restoration glitch and you can then create your overpowered potions as well; also of course a nicely overpowered set of Fortify Smithing gear with another bunch of Fortify Enchantment potions.
So. My opinion on these is that it's very good that they exist. Nobody is forced to use the glitches, but if someone wants to play a one-shot-killer in Master difficulty (with some extra difficulty mods, perhaps), then they can do just that. It is a single-player game, so nobody except the player themselves is bothered by that player's activities.
I myself used the Fortify Restoration glitch one time and got scared when I realized that I could improve the armor rating of one set of gloves so much with it that the gloves alone would have crossed the armor rating maximum. I then decided to wait until the potion's effect wore off and re-equipped my blacksmithing gear before I improved the whole set of armor normally - if I want to be a one-shot-killer, I'd play in Novice difficulty.