Hopefully each piece has a difficulty rating, with iron daggers way, way, way down on the easiest side of the list. Ideally, any item "could" be manufactured by anyone with any smithing experience, but the percent-chance of a successful completion would be extremely low. Even if a low-level smith managed to roll a 1% chance, the quality would svck. That being said, easier items should yield less reward in terms of skill increases. You could grind away at iron daggers all day, every day until you max out the material efficiency and quality, but it should cap out.
yeah that would be nice. Hopefuly there will be a mod for it in the future

. Also, if you sell someone 10 -same quality- iron daggers, they should not cost so much as the first one. I wonder if there's an economy model in Skyrim and how complex it is? But i think Oblivion was more realistic in this one. But that said, i enjoy Skyrim a lot! Theres always something to do better obviously.