I level smithing for two reasons:
1. To raise my forsworn armor
2. To make my weapons (warhammers)

I assumed that an orcish warhammer would be stronger than a dwarven one, but it says that Orcish = 49 while Dwarven = 51

Why bother raising it at all if the lesser stuff is higher?

Anyone? I figure someone on here uses smithing.

Dwarven weapons are marginally (1 base point) better, yes... but Orcish armor is much better.

Dwarven full set: 78 base armor
Orcish full set: 90 base armor

Thus, the Smithing requirements for orcish are higher.
-Loth

Edit: In your case, keep using the Dwarven hammer until you get to Ebony.

That's odd, what are your perks? I used to be a smith, but gave that up. If you have the dwarven perk but not orcish, then that is what it is. And I mean this after you upgrade them. If not though, then I don't know what the problem is.

Probably what the guy above me said, one is better at weapons and the other at armor. ^^^

I believe you can 'perfect' (for lack of a better word) it at the table. It all depends on what weapon and boils down to personal preference. Two points really dont matter but one has to consider the playstyle and such. Just enjoy the game, dont worry too much about smithing and alchemy and stuff unless you really want to.

So for a person who is only interested in smithing weapons (warhammers) how am I supposed to use smithing? Does that mean I shouldn't make an orc warhammer?

Correct.

Skip the Orc warhammer and keep improving your dwarven one until you get the Ebony Smithing perk. Then, make and improve the Ebony warhammer and marvel at your badassery.
-Loth

PS to keep leveling your smithing skill, you have 3 options:

1. Pay for training -- expensive at higher levels
2. Grind skill at forge by smithing useless items like iron daggers -- no fun and tedious, ruins immersion
3. Use grindstone/workbench to improve the loot you find while exploring before selling it off -- need to also mine/find components like iron/steel ingots and such, but make good money and you don't feel "cheap" like making iron daggers. Improved loot sells for much more money... especially with a high smithing skill

Edit for #4: Also, you can go the jeweller route, and make jewelry to raise smithing skill, but this requires precious metals and/or gemstones. There is an Alteration spell that you can find (not buy) which allows you to convert iron ore (not ingots) into silver and gold ores.

Smithing is usable on just about any character. One of the biggest selling points is being able to upgrade weapons and armor. While at first the bonus +5 or +6 might not seem too much, but when smithing is at 100, coupled with potions and fortify smithing equipment, you can easily create frighteningly powerful weapons and armor. My daedric bow does a solid 140 right now, and that isn't even with proper enchanted equipment on.