Anyone could literally just say 'Yup, I got super rare armor X from Y shop/Z monster on my first try'. If, for example, you want the coolest looking armor straight from the start, there'd be nothing stopping you. It's just that you'd have your shit-tier DR while some munchkin is running around with beginner gear. 

I never said it was a [i]good[/i] idea. I honestly prefer the Elder Scrolls way of handling armor (AKA, the one you suggested), but I suggested it to eliminate shenanigans like the aforementioned example from occurring.

SPEAKING OF BOSSES!

Did we ever decide on what exactly the game world would look like?