You mean some of the coolest armor in the game has drawbacks, something many people were saying they wanted implemented in the game?
Or am I crazy?
"Bethesda, everything is too easy, vampires are ezmode now and werewolves too and I beat everything with one hand tied behind my back..."
Perhaps the smoke is there because you're not supposed to be attacking from a sneaking position in that armor? Instead, it's hiding you, until you come out of the shadows like the pansy you are and actually attack. It's heavy armor, designed for full frontal assault, not skulking about in a corner.
(This was all said with sarcasm, please don't get panties wadded up over the tone)
