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The restoration loop is an exploit that takes away a lot of fun in the game and is fixed by the unofficial patches anyway.
(or was it just a cap on how high a bonus can be on 1 piece of gear? I forget)
To my understanding, without the unofficial patch, it won't boost smithing at all.
But I can confirm that with the patch, it will boost your abilities even when your base skill is at 100. This is true of all crafting buffs, in fact.
... and +10% smithing.
I have a smithing of 31. I have boots that give +13% and a potion that gives +20%. I have the Elven Armor perk. According to the Smithing Qualities table in UESP, I need a 40 Smithing (with perk) to improve my Elven weapons and armor to Exquisite (quality level 3). With 31 +33% Smithing, I thought I'd be able to improve armor/weapons to Exquisite, but I only get to Superior.
What am I doing wrong or not understanding?