The smithing actually makes the game playable for me. My standard playthrough is to participate in as many tournaments as I can and make about 15k denars. Previously, I used to buy a workshop or a caravan, but now I just buy pugios, smelt them and start crafting two handed swords. At some point I will unlock a two handed blade that does a lot of damage or a javelin that isn't completely terrible. Any of them will make about 105k denars. I also don't sell anything that is below this amount or has any minuses in their stats (it is my principle). I know that this is completely broken, but I don't think this should be nerfed significantly, until the workshops and caravans are buffed/fixed. Even fiefs do not make enough money (most of their income goes for their garrison anyway). Only after leveling smithing to somewhere 200+ (which happens pretty fast), I start hiring troops and companions.
Maybe I am just playing it wrong and there are actually valid ways of making money and supporting a big group of elite fighters without constantly fighting.
Overall, smithing is something I enjoy the most after fighting. It would be nice to have quests like "the lord wants a legendary sword whose name is Dawn" or something like this. But right now, it would be nice just to have bugs fixed.
P.S. The game adds your crafted weapons to their towns even if you don't sell them, but there is a mod that prevents it. Participating in tournaments may get annoying, considering that you get only 0.25 of a regular experience and leveling is very slow (even in 1.4.3), but there is mod for this as well (this mod actually made practice fights extremely more enjoyable for me)