Ghengis_John
[13] Hero
Do you find more powerful items when you are at higher levels like in Oblivion?
You do. And unlike oblivion things can only get so tough, so you get to feel like eventually you are increasing in strength. However, a daedric sword scarcely does more daamge than an ebony sword, and an ebony scarcely more than a glass, a glass more than a dwarven and so forth. The steps are not that great. Sheer over powered omnipotence comes with the crafting skills. Which I would not advise leveling until you have at least one proficient combat skill. For me it was 80 points in block. I recently made a new char on the Xbox (I'd been playing on PC and wanted to compare the 360's graphics) and I can report that leveling crafting skills before level 16 or so is unwise.
Then again my guy had rockjoint the entire time and I never knew... who knows how that skewed things.
Bottom line, don't rely on finding better loot, you're better off building it. It's a more reliable procurement method and the items will be stronger anyhow.