The addition of crafting in the game is great, but there are a few improvments that I think could be made to it:

Customising Items - This could use a similar system to the character creation system where you can customise the look of the item you're crafting. This could allow you to change things like the length of a blade, the decoration on it, etc. It would also be good to be able to name your custom items.

Woodworking - I don't know if this is already possible, but it seems a bit strange that you can only chop wood and not really use it for anything useful. Woodworking would allow you to make arrows and other wooden items such as wooden bows and shields. Chopping down trees would be fun, but probably a bit taxing on the hardware.

Time Passing - It seems strange that you can instantly make items, when it would normally take much longer.

Known Items - Much like spells, I think it would be better if you actually had to learn how to make items before you can make them.

Let me know what you guys think! Maybe this could be made as a mod or as part of some future DLC.