Regarding enchantments, when I played Oblivion, I came across some enchantment "recipes" that would make a weapon so powerful that you might as well be playing in god mode. I made a few of those and it got quite boring after the novelty wore off. I've played through Nehrim 3 times, and I've made a few enchanted items which were quite enough. A couple of dino flake rings added 60 health & magika. Find a decent bow, enchant it with one of the damage gems, use some decent arrows (i.e., silver or better), and you will be quite lethal at a long range. As far as not finding anything but iron and steel at level 14, I don't know where you've been looking, but there are many, many pieces of enchanted armor out there, something for everyone. Virtually every "boss" has 2 or 3 enchanted items, or more.
As for magic, your destruction master at level 70 and a swordsman with level 20 destruction might get the same damage from a level I fireball, but the difference is, because of your level, you might have a level 5 fireball and be able to fire off 7 or 8 of them in a row because of your intelligence & willpower levels, whereas he can only fire one level I FB and that's it because his magika is so low and slow to refill. So there is a benefit gained from the higher levels. Think of it this way: An 8-year-old boy and a 30-year-old man can both fire a .22 caliber rifle, and that bullet will do the same damage when it hits the target regardless of who fires it. However, the 30-year-old man can also fire a .50 caliber elephant gun which will do a great deal more damage than the .22, and the 8-year-old boy probably couldn't even lift the elephant gun, let alone aim it accurately, and if he did fire it, the recoil would likely injure him quite a bit, and his first shot would also be his last (especially if he was shooting at an adult pit rat!). Experientia docet!