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yes you got it, that's exactly it, perks are returned to you, and skill rolled back to 15, so you can level up again, but it's not as handy shortcut for switching active skills as you might think, because you only level those by using them, so if they're unused til now, you'll have the perk points but not the skill level to apply them immediately.
Fallout 4 averts this by never including a level cap to begin with.
So, i've never gotten super far in Skyrim. Would this mean that you keep your perks unlocked but are only at lvl 15 so the idea is:
You cannot use your original perks, cause you're too low level. But, they're there already once you get those levels back
But, you have the points now to unlock perks in other trees?
Essentially, it just resets your skill to how it was in the very beginning of the game. You keep nothing in the skill at all. The perk points you spent on perks in that skill get refunded. You might assume from the name (making a skill Legendary) it gives some bonus but it does not. It just allows you to keep leveling up your character using that skill.
Or I can use one of those black books, right? The one where I fought Marak let me reset a skill tree.
Both options work and give you back your perk points, the only difference is that book does not reset your skill level.
it's a non issue tho, because once you get to a certain point you will have things that help you level up over and over again, making it so you can just go legendary over and over again just to earn extra perk points and levels.
good example of an exploity way is the fort restoration exploit with fort enchanting onto something like fortify smithing/alchemy on some gloves and use it to just make a single potion or improve a single armor or weapon item and boost through those levels.
oh and then you sell those ridiculously high priced potions and weapons and such to level your speech the same way, and go legendary in that as well.
It's my guess that Bethesda came up with this because when the game first came out NO ONE could get to 81 naturally because to do so requires hitting 100 in EVERY SKILL. Who is grinding restoration or blocking or pick-pocketing to get that high? No one.
I wouldn't do it that way. I personally would use skills that you have that are high level (thus able to legendary) without necessarily needing them AND you can grind the skill back easily. Alchemy and alteration were the two i used. With both skills, you should have enchanted gear to make the best of the best potions, and to cast the best alterations spells. Bust them down via legendary, then put on your gear and get to work. and levels will just shoot back as you make expensive potions and cast master (if possible) spells (there are some you can do in crowds for EASY leveling up).
This way, you can put all the points you want into Smithing without having to re-unlock stuff in the tree, you can get light armor easily!
If you really desperate...take the potions you make (or stuff you enchant) and sell them to Grelka in Riften...she sells light armor training. Buy your 5 levels of training, sell your stuff and make all your money back plus level up!
And before the update I'd just stop playing a character once their main skills got to 100. I wasn't gonna start using skills that I didn't build my character around simply to keep leveling.
I like the legendary system because my character can stay the same type of t character. I get one handed to 100, I legendary it so I can keep leveling. Within half an hour my one handed is back to 50 because all the extra damage I'm doing with high tier weapons and the damage you do dictates how fast it levels up.
I wouldn't legendary crafting skills like enchant or smithing though. Probably my only exceptions