I forgot to mention this earlier: Some bandits do wear Daedric. Some wear light armor, and some wear heavy. It was based on their class. Leaders in particular come to mind as wearers of heavy armor. I don't remember what the classes were, exactly.
A huge flaw in Oblivion was that leveling up broke the main storyline. Having leveled some before going through the main quest, you'd face large gangs of insanely strong Daedra with extremely weak, death-prone allies who were originally supposed to help you with the large numbers of enemies. The whole leveling to scale experiment was a failure in planning, in my opinion. I doubt we will see a very similar system in the next Elder Scrolls incarnation.
...ignore most of it except for a few key points which they'll misunderstand in some bizarre way and make flawed arguments against.
Or, as we've seen, post some nonsensical arguments disputing points no one has brought up here at all.