You can, but I would be hesitant to completely max out weapons and gear. I did up to about 115%+ with some enchanted armour and it is just ridiculous when you are 1 shotting dragons and whatnot and the challenge in the game is completely removed. I deliberately recrafted armour with different enchantments to reduce bow damage from over 500 to almost half that and bring up melee weapons which I had low skill in so I could enjoy a new playstyle without a new game. Similarly I made some magic armour so I could be a destruction mage for a while to.
It's all to easy to make this game ridiculously easy, use alchemy and enchantment combinations wisely to not spoil the experience. The best use of the alchemy and enchantments is to overpower the best looking gear to you and allow you to use those weapons/armour for the rest of the game. I use full elven gear, armour, bow, warhammer, swords, arrows, the works but it's all powered up to a point where no more damage is ever neccessary.