Actually they just need to tied price with experience ,like in alchemy, and triple the experience needed. So smithing iron daggers is now 1/3 as fast while those with the perks and materials making advance equipment can level it at about same rate.
That's....the very definition of diminishing returns. =x
Actually if you can acquire banish and paralyze weapon enchantments, you can make a 2000+ gold enchanted iron dagger from just a petty soul gem.
This provides you endless money (legally) to buy whatever craft materials you need, including higher-end ones so you don't need to keep waiting for iron ingots to be restocked.
Tried this before, but it doesn't seem to provide as much fiscal benefits as banish + absorb health. Then again my Speech on the first character was pretty low, while on the 2nd character that constantly makes 1700+ weapons with banish + absorb health has high Speech. Still I agree that maxed out Enchanting with Extra Effect, banish and one other high value enchantment unlocked is the best way to get money legit in Skyrim.
The problem with this method is that you are skipping a bunch of content in the game, and are missing out on good magic drops. If you travel around, do quests and dungeons, find word walls, mine along the way, not only will you make enough gold to level smithing, but you will get a bunch of good magic items.
No offense, but that's pretty slow and pointless once you've leveled Smithing/Alchemy/Enchantment. None of the leveled loot I've seen so far is fully optimized or customized to your build. I've completed DB quest, currently doing Thieves Guild and on my way to becoming a thane in a few cities. 2nd character is currently level 54 2h/destruction specialist. TC's method is pretty slow actually, there are other ways to get starting cash fast:
- do the repeatable quests for Thieves' Guild, each simple heist or forgery nabs you 500 gold. You only need starter cash of 3000+ to buy one enchanted weapon to learn its effect.
- the starter dungeon for "The Golden Claw" should nab you around 2000+ worth of septims by the time you're done
- craft iron daggers, but enchant them with absorb health or fear first. The gains are marginal, and you only start making money with banish enchantments. Banish weapons only shows up in shops after Enchantment has hit 75.