What I still find a little silly and disappointing is a proficient blacksmith can add the same amount of damage to an iron dagger as he can to a dragon bone one on equal grounds. So the iron dagger ends up 1000% better than its original state and the dragon bone one 50% better (metaphorically speaking). Does anyone like this feature? Or think they should have made improvement based as a % on the base damage.

I see where you're coming from, but that might lead to a perception that some things end up not worth bothering with.

Personally, it doesn't bother me at all. There are far bigger fish to fry in Skyrim for me, most of which are easily fixed with mods (if you are so inclined).

I don't mean they should necessarily have added even greater damage to higher end level weapons in smithing , as god knows skyrim doesn't need this lol. Just maybe not increase the lower quality ones so much. I see your point about if they add too little damage then its kind of pointless too though.

I see the logic here and don't necessarily disagree with it. My preference, however, is for the way it is. My reason is that, in general, I prefer the lower end gear for appearance sake and the current smithing arrangements allow my character to use the same nice hunting bow and fur armor all the way through without having to change to uglier gear just to keep up.

No, I think the current system rewards the smithing skill, rather than the "base item finding/purchasing" skill, so it's what I want for the effort I put into learning to smith.

What I'm not so happy with is the fact that a player who can smith Dragonbone, can't do as much with Elven if (s)he came up the other side of the tree.

You know you can do both sides of the tree. Also working with Elven is different than working with Dragonbone and you should invest in the perk if you want to be a master of working with Elven gear.

Agreed.