Its their job and they did it in Daggerfall?

why is the only way to upgrade weapons is to spam 100's of iron daggers?

A blacksmith should be able to upgrade your gear for a small sum of gold. It would make much more sense imo.

A very valid point, would create a nice gold sink too!

I'd love that feature, especially for a character like my current one, a mage. I don't want to level Smithing on her, but I'd like any followers I use to have decent armor & weapons!

Yes it would be nice. I don't understand why an assassin must be a pro - smith to get access for a strong bow and to get his daggers improved.

And why can't anyone recharge my enchanted weapons anymore either?

I don't think there's a mod for that either. There is for weapon improving, though.

I never thought of that! You make a great point. Maybe in Skyrim you'd be considered a milkdrinker if you asked someone to sharpen your sword for you...