It depends. Fighting is so easy after you get the baiscs (crowd control) that no gear really counts. I had to fight naked after a weak spell disabled shield and armour on a character.
Nevertheless between level 5 and 13 (finishing Hiberheim) I constantly used crafted belts (for strength or constitution), rings for speed (mages with glass cannon) or movement (tanks). In Cyseal e.g. everything boosting air, earth or water resistance is useless, so there is a huge luck factor in finding gear.
I regard craft 5 as an essential leaving Cyseal (at least 2 provided by bracers or belts), blacksmith is of minor importance. And the companion Jahan lends itself perfectly for this task. If nothing else than already the ability to improve gear by essences and rubins pays for itself - resistances are far more important than physical protection, same for willpower and body building.
Regards,
Thorsten