You can craft some "special" items -- definitely not "trashy" -- but they always come out white. For example, the sword in the image below is 100% crafted from scratch, has pretty good stats, is actually the best weapon my character could possibly use, and even has flavour text... but officially isn't magic/rare/legendary/unique.
Also yes, your crafted item will always be the same level of you, but this is a good thing. It means the Sword of Planets and other recipes scale with you as you level, so you can build a character around always using that sword (on average you should find the material to craft Sword of Planets 2 or 3 times in a playthrough, so you just need to space them out a bit instead of crafting a new one every single level).