Can't remember the exact name of it, but there's a mod out that modifies crafting in certain ways to make it more realistic. One change is that instead of using copper and iron to make steel you need charcoal and iron, and you get charcoal by chopping wood and putting the wood in the smelter. With that mod I chop wood all the time now...I think it's included in the Titanis mod.
I have similar changes planned when the CK comes out, as well as arrow crafting. I'll still be using wood as an early source of income, though, since I don't do much dungeon diving until I've geared up a bit, and all that wood chopping pays for the materials I need to get there.
Wood chopping
does quickly lose use as a money source once you start exploring, but that's a
good thing as it means you don't spend the whole game struggling to scraqe up enough cash between adventures.