Not looking up the numbers but there's a range of levels somewhere between 20 and 40 where your pets will only duel wield if given two weapons. You can look them up on the mage and necro pages. During that range you will definately want to give your pet two cheap weapons.
Additionally, like you said, at the lowest levels pets will take advantage of the higher level damage on the weapon, but I think that peters out after level 12 or so.
Armor does help, but not much. Regardless, when I'm just killing stuff and something drops a piece of armor that otherwise I'd let rot, I just pick it up and give it to my pet. Usually doesn't happen in a circumstance where it's going to make much difference (fear kiting, faction farming, etc).
Enchanters are fond of giving their charmed pets -MR items to lower their magic resists, as charm has a chance of breaking every tick.
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