But what if your weapon (and others in the world) was unique? What if I like the hilt of the steel sword, but not the blade? This is why weapon crafting should be an interactive process. The player should be able to choose from a variety of blades and hilts/handles when making their weapons, as well as the materials that they are made of. Who wouldn't want a skyforge steel blade with a jeweled, golden hilt?
This also extends immersion, since a blade forged by Eorlund Gray-Mane would have lovely nordic patterns on it, making it unique, and a sword bought from a Khajiit caravan would be covered in exotic patterns and be shaped quite differently.
This could also be extended to armour, with different option such as pauldrons, cloaks or tabards for cuirasses, horns, spikes or wings on helmets and different engraving styles for everything. This way each character would be unique, regardless of what level they are. It's quite boring when every warrior I make looks the same at level 7 because I just end up using the best armour available.
When Bethesda fixed the exploitability of the smithing skill, it was a boon to gameplay and a damper on aesthetics. This would mke up for it.