That has nothing to do with balance. The simple truth is that there's no gameloop to master with smithing. Crafting the first blade is literally just like crafting the 10th. So what do you want to be rewarded for? There's no learning curve, no investment other than time - through repetition.
But the whole discussion is deviating from the skill system (with bad caps, overtly complex point systems and it's overal problems) towards smithing speficially. So let me just tell you, that yes, i expect to bypass that system. As it's not rewarding anything. And i only think it's resonable to be able to find and hire actual smiths to forge weapons regarding to the specifications of their liege/employer at some point in the game - even if it would costs thousands of denars.
I would like a learning curve as well. That's up for discussion and brainstorming.
But, by your logic, there isn't a learning curve in battles either!!
Fighting your first big battle is like fighting your 100th one. The skillset that you have to practice is exactly the same. Block attack run - block attack run.
Maybe you should bypass that system as well...