I love how people exploit a flaw in the game to its extreme and then complain afterwards because it let them do that, attempting to look like their actually concerned about it...Its hard to believe, because if you were really concerned with how it affected gameplay, you just wouldnt exploit it that far in the first place. Although, I do understand that is hard to do because being Skyrim's chuck norris is too much fun. (Im glad I dont know how to exploit smithing and enchanting yet lol)
I believe that is what happened with blacksmithing and enchanting. They are powerful due to exploits. If not exploited, they are reasonably balanced.
There are diminishing returns for making iron daggers, so the devs did take into account this. Though I still think that blacksmithing is easy to level compared to alchemy.
Then again, I actually make a huge profit off alchemy, but not blacksmithing.