My first character has now finally maxed out his Smithing. He is the only character I'll make that uses that skill. It was fun and I liked it, but now I'm ready to play old school style and drool with joy when I find loot that contains awesome enchanted armor again (like the Morrowind days of yore). I would never say Smithing was a mistake. I thought it was a great addition and I'm happy they added it. I just won't be using it any more. Now... enchanting... hehehe... that's next on the agenda for my future mage.
I didn't got Dragon Smithing perk so I cannot make Dragon armor but I have a full set of Dragon Plate and Dragonscale armor. You can get anything without smithing it. Just the chance of getting it as loot isn't high.
these 2 go hand-in-hand. you can exploit/not exploit, quickly level up the trades and use/not use, whatever. i've done it every which way, lol.
and, then, you can go back and play the more old-school, organic way and enjoy that gameplay, as well.
you can definitely get dragonscale as loot at hight levels. but, it goes back to the whole difficulty balance problem, in that, by the time you get it your character is, for me, boringly powerful. as well, the rp gets jacked: my orc wants orc gear now and so you have to grind the smithing to get to orc gear or whichever.
that's why the trades should probably not have any experience associated with them and implemented with more creative methods of gameplay.