Disclaimer: This is my opinion on the whole difficulty and what should be "fixed" thing. Nothing I say here is in any way targeted at any one in this thread or anywhere, it is strictly how I feel about it.
Ok all this talk about the game being too easy or whatnot that you should just quit "exploiting" everything to make it more challenging and use low quality armor makes no sense really. I can understand wanting a challenge in an RPG, but when you have to purposely gimp yourself to have this challenge, it becomes totally stupid.
If they wanted the game to be a challenge by not having strong armor, then they wouldn't have had anything past steel armor in the game for you to use. I shouldn't have to tone down what is possible by totally legit means of armor smithing, improvement, and enchanting just to have a challenge.
Everyone calling using a set of alchemy/smithing gear to make an enchanting/smithing potion to help you improve your stuff an exploit makes no sense. Using just 100 enchanting to make your base set of smithing/alchemy gear is completely legit, it is by no means abusing a system.
Now using that gear you just made with your 100 enchanting to make an enchanting/smithing potion is still part of the game as it was coded from the start, nothing breaking the basic design yet. For you are still on Tier 1 of potions. However, if you go further to use those enchanting potions you just made to make another set of alchemy/smithing gear for a stronger enchantment, that could be getting into the cycle of exploiting.
Using the dual-headpiece trick is indeed an exploit. Though using just your base gear from 100 enchanting/alchemy/smithing (plus relevant perks), and the enchanting/smithing potion you made with said gear to make/improve your battle armor is all part of the game as they have made it, nothing abusing a system at this step.
With this armor (assuming elven/dwarven even), you should not be able to destroy everything in the game on master difficulty. As Demomo said, enemies level capping at most of 60 is stupid when you yourself can go to 80. Us "non-regular" players should be able to have a challenge as well without resorting to gimping ourselves back to HELP I AM TRAPPED IN 2006 PLEASE SEND A TIME MACHINE *** armor choices and completely ignoring certain aspects of the game to do so. Such as not using certain enchantments or enchantments all together.
All this said, it is still just an RPG, not an MMO, every person can play their own game however they see fit, it's your world, you play it as you will it. If using only steel armor and not any form of smithing, enchanting, alchemy is your "cup of tea", then so be it. But those of us who like to have the best armor, best enchantments, best potions, etc. shouldn't have to resort to the other play style just to get a challenge.
I myself play the game in a fairly unique way too, (well I think it's unique xD). I'm still on my first character, he's a "do all the things" type. Where I use smithing, enchanting, alchemy gear/potions to make my battle armor and potions and do all guilds, working on doing every side-quest possible in the game, etc. I myself am level 67 where basically nothing can kill me, even Alduin (first fight) only took my health down by maybe a 1/10th of my max and he "died" in around 6 or 7 hits of my sword. Was it a challenge? No. But it was still fun for it is my first play through, I still don't know the story or what's going to happen next. I myself have no problem being a "god" on this character, after all, you are Dovahkiin! You're the the baddest bad *** in all of Skyrim, able to slay any dragon and STEAL IT'S SOUL! You tell me if that doesn't sound like you might supposed to become a god among men, in a sense. You're even the first one in over 500 years or so (I forget the exact). Live the legend I say. :P
Also, my most favourite shout would probably be either Dragonrend or Clear Skies. Clear skies at level 3 does a mini knockback, like level one Unrelenting Force, staggering the enemy and it's the fastest recharging shout in the game.
Edit~ As for the game *** up a lot on PS3, maybe 360 too, idk. All I can say is, get it on PC! I rarely ever have any trouble with my game on PC, to me it seems this game was designed for PC and then just ported to console. Now if you don't have a PC that can run it (which isn't hard, my PC only cost $2200 5 years ago and runs it on a modified medium-high setting), you're probably ***out of luck for a while.