I did the stupid make a billion iron daggers and got my smith skill to 100, and now I am wondering if that is a mistake.

As punishment, I am not letting myself use enchanting or alchemy, and I have to keep the difficulty at expert. But I don't know, should I start a new character? I have about 40 hours into this one.

As long as you don't use alchemy and enchanting then you'll be fine. Its only if you max out on everything purposely you'll find it alot easier.

I know, but I am walking in around in two pieces of dragon armor I didn't really "earn". Maybe I just won't let myself wear it for a long time. Stick with the Orcish stuff I made legitimately.

Don't worry, you don't need enchanting or alchemy, it's not a hard game. Well if your playing stealth you don't.

I wanted to focus on alchemy but it's not worth it.

Just bump it to master and don't perk in enchanting. You'll still have plenty challenge