This is exacerbated by other stuff, too; for example, just by joining the companions you are given a skyforge steel sword? No effort required? That eliminates 3/4ths of the game, right there. And what about daedric artifacts? Without smithing, they're awesome; with smithing, they're almost immediately made useless.
The worst part, to me, is how easy it is to make and/or upgrade items. It could take me a whole dungeon and a boss kill to get an elven sword, or instead i could spend 500 gold and make the same sword, except better. And if I find an awesome weapon, upgrading it is either A: as simple as buying the ingot from the smith, or B: just head into a mine somewhere. B isn't QUITE so bad, at least there is some effort involved, but when I just buy the ingots, it ends up feeling like i've cheated.
Yeah, yeah, I know I can just not do it, but it breaks my immersion, y'know? I'm looking through the lists and I'm like "Oh, i could buy 30 steel ingots right now...or I could go find iron ore and corrundum and make my own. Hmm.
Honestly, I'd much rather have upgrades be based on items used, rather than skill. For example, a steel ingot could upgrade your weapon to "Fine", but a Daedra Heart could upgrade it to "Legendary". You could still have it be based on skill, but at least then it would take a little bit of effort, y'know?
I don't even know for making the weapons yourself. There must be a better way than the current system, though. Get one perk and you can make every type of weapon and armor? Not to mention Dwarven, which in prior TES games were Imperial contraband because they were such advanced technology and were impossible to re-make, while in Skyrim anyone can make them from a chunk of dwemer metal and a pile of scraps...