Equipment value is incredibly high when compared to other items

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Summary: price for equipment is very high when compared to other expenses/sources of income. This has two main side effects:
1) Loot from battles makes all other forms of income (except smithing) largely irrelevant.
2) Smithing is incredibly profitable once the right components are unlocked, since the value of the crafted equipment is much higher than the value of crafting materials (as in 100x and upwards).
How to Reproduce: a) Start a new game, recruit some Khuzaits and turn them into T2/T3 troops, then start fighting caravans/lords. Revel in the large amount of cash you are obtaining.
b) Start a new game and try a trader playthrough. Despair at how little you make when compared to the former. Recent nerfs on passive income make it feel even more noticeable (minus Tanneries that seem to generate more money than they should because of a bug with hides, so I assume that will change soon).
Version: I have noticed this since 1.3, it is definitely still there in the 1.4 patch.
Installed community-made modifications: none.
Computer Specs: not relevant for this issue.

Edit: typos.
 
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I really don't know the justification on some item prices. I got a set of javelins as after battle loot and you wanna know what they were valued at?....300,000+

And it was from fighting mountain bandits. After I saw that value I was legit just thinking, "well time to retire".

Either the game needs to inflate all prices of everything, or really bring prices down of weapons and armor. Its really dumb tho how low tier things can be very moderately priced. But as soon as it reaches high tier items, it nearly the dame price of the whole town. Also stupid that you can have an entire army of high tier troops which values wise would be worth the whole the dam kingdom 5 times over.
 
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