I personally like the feeling of being somewhat vulnerable, as dungeon crawling become tense, knowing there are dangers make the game more immersible.
1. The problem with smithing + enchanting is obvious. As pointed out by several threads, you can achieve ridiculous stats, making you practically invulnerable.
2. This game isn't too challenging even on masters. I am wearing robes and without using alteration to boost defenses; playing on masters in this condition actually provide a bit of challenge.
3. So if you're playing on any difficulty at all, you really don't need enchanting and smithing for any reason, except to make the game incredibly easy and unfun.