If you level it normally, there are few issues...if any. I'm level 35 and use it when I want to make new weapons, when I have ingots, want to make and sell weapons for RP value etc etc...I don't go around buying hundreds of iron ingots and leather strips.
You whine about RPing, but treat it like a powerleveling exercise. Don't use a potion, then make an alchemical item, then use that to make a better alchemical item etc...just use a potion to make your item better, or use an item to make a potion better, and leave it at that.
Don't whine about something that you're purposefully trying to exploit. Treat it like an RPG and try to immerse yourself and you'll find that everything tends to balance itself out.
Pretty much all of this. Kind of like how people would say Oblivion was too easy when they'd also point out that they maxed out their skills at level 5 and just avoided sleeping to level up beyond that.
If you powerlevel your character, yeah, you're diminishing the experience as a whole for yourself and you should be complaining more about the way you play the game, not how the game is set up. Playing normally, the leveling system and the way the skills grow is excellent, and feels very much like a perfect compromise between Morrowind and Oblivion's leveling systems, especially with scaling the enemies.
Not everyone just maxes out their smithing immediately after starting. Some of us just play the game and enjoy the adventure as it happens, instead of wasting time with powerleveling characters.
You should try just playing the game instead of obsessing over maximizing levels and so on. Just let things happen and go with the flow.
If anything, just being decent at playing the game and knowing how to spec your character is more overpowered than anything else one could suggest.