I went the light armor route in smithing and am at Dragon Armor... yes you use Dragon Scales and Dragon Bones with Iron and Leather to smith them... As for shortage of Ebony, I have an abundance of it. I keep buying it every time I see it in any store (I'm loaded and there is really nothing left to buy so it doesn't hurt.)
I haven't gotten very far in any of the quests though because I keep doing the miscellaneous quests because they don't take much time and I've been stressed with school.
I have yet to run across anyone selling Ebony
Opportunity is often missed because it shows up in overalls, looking like work.
I havent completed it yet as im kinda that type of gamer that wants to do EVERYTHING first time round. But ive put a decent 50 hours in with my Breton Mage 'Morgana' but with WWE 12 out and watching Sopranos i have no time.