Correct me if I am wrong, but so far I have not come across anything in Skyrim that is superior to crafting my own weapons/armor. Was this intended? If so, it basically forces all players to fill these skill trees. This basically takes away 23 levels of skill points away from the player. In a game that is supposed to be all about flexibility & freedom it really limits what one can do. Yes you are not FORCED to use these skill trees but your basically stuck using weapons that are 1/2 as good as the ones you can create yourself.
Do you mean the unmodded iron armor that you make, has a higher defense value than the same iron armor sold by merchants?
If no, then I actually have to say that you are gimping yourself, because I can always buy the same armor from merchants, and level in a skill that cannot be replicated elsewhere.
If yes, that's really cool. But it should be intended. It's like me leveling alchemy to bypass the need to use magic, because I can make most of the stuff that magic can do, without the need to level all 5 magic schools.
But the time it took for you to level your blacksmithing, other players would have leveled in their 1H or 2H skill, increasing their damage. They increase their damage through 1H skill, you increase your damage through better weapons smithed by you (but you have relatively lower 1H/2H skill). It actually balances out.