Alright, I have seen sooo many threads on armor, it really needs it's own sub-forum! I am not going to debate nor comment on the appearance of armor, nor leg armor. But here's what I think:
Weapons (melee)
All melee weapons IRL take damage in combat, the first of which is they get dull over time (if in combat over time). They should need periodic sharpening. Swords break sometimes, they should have a tiny chance of breaking each hit. So weapons, particularly melee weapons, should have health bars, and should require a qualified smith to restore their health. And the weapons should have damage reduction as the weapon health goes down (as it gets dull). The idea that one weapon can be used for years without maintenance, and retains it's brand-new damage stat, is a budget-saving cop-out. It's one thing to claim that a magic-enchanted sword keeps sharp magically, but it's quite another to claim all weapons do so.
Even if you assume that weapons are automatically sharpened one night before you sleep at your home, what about before you have a home? You can literally go about Skyrim without a home, using the same weapon, with the same damage, for years, and never stop long enough to sleep. It's a bit too non-realistic, given the other realisms of Skyrim.
Armor
Armor takes damage too over time during combat, whether in melee combat, or other incoming damage. That's why it is naive to think that armor would get stronger over time. Do you really think that the wearer can modify his armor to be better? When this armor has been developed and adjusted for hundreds of years by a dozen generations? No, not enough to counteract the normal wear-and-tear on the items, not by far. So armor should have health bars too, and should also need to be worked on a bit periodically by a qualified smith to restore it's health too. IRL armor plates and pieces were often cut off the armor during battles. The wearer would often go back through the battlefield to find the pieces to be replaced, and sometimes required a blacksmith or tanner to do so.
What's more, the armor rating of any piece of armor should go down after it drops below a certain health level. Smiths should service your armor and weapons for a reasonable fee, or if you have the qualification (perk for that classification), you can do it yourself.
When a piece of armor or weapon health drops to zero, it should either be unusable, or broken (permanently if it is a melee weapon, unless you have a "repair broken melee weapon" perk; and if you have such a perk you should also need the "arcane blacksmith" perk to fix it if it is an enchanted weapon). Skyrim NPC blacksmiths should not have the ability to repair broken melee weapons as described.
The armor cap is bunk
And while I am on the subject, I would also mention that I think the armor cap is bunk as it stands. It's OK to have one, but it's not OK when I can wear a full set of (legendary, enchanted) Elven armor and hit the cap, considering the full set of Ebony, Daedric, or Dragon armor is no better in game defensive terms. What incentive is there to wear Heavy armor then? Yeah, early game only. By the time you can craft a full set of legendary Ebony armor it is not better than the Elven armor that you could craft (approximately, in actual use game defense terms). What's up with that? I'm not saying raise the armor cap, there are other ways to get there: A. Reduce the armor improvement amounts. B. Reduce all armor ratings. C. Increase the armor cap. One or more of these things should be done.
But, the game has made it's GOTY status, made it's money, so none of this will happen (without mods).


Talk about how much of a pain in the rear that would be. Also a serious drain on resources. So Beth, how about developing a hardcoe mode for people who don't get enough real life in real life. 
