Simple Question: I'm at lvl 100 blacksmith and there's still an option to "Craft" armor upgrades. But it says I don't have the skills for it.

What's wrong/happening?

You need perks to craft things above leather and iron.

I've wondered this as well.

I'm a bit embarrassed to ask - what do you mean by perks?

You need to put a perk point in Steel Armor to craft Steel Armor and so on. Fill the Perk Tree for Smithing, and the sky's the limit.

Every time you level you are awarded 1 point towards gaining Perks. You may spend it or save it.

If you look at the tree of stars within each constellation you will see that they represent Perks (or upgraded attributes for your character.) You invest those points in the Perks you want for your character. Each perk requires a certain Skill Level. Some perks take more than one point.

As you progress up the tree you need higher skills to buy the Perks.