Crafting is a double-edged sword; The problem with crafting in RPGs is that it devalues adventuring. My personal view on the matter is that loot should come from killing things, finding hidden treasure and completion of quests. Not combining cowskin with needle and thread to make [Best Boots in the Game] without ever having to leave town.
It is not necessarily a double-edged sword.
In the 1st game, the craft was pretty clever. It would only upgrade your current equipment, not create a new one.
You still had to loot good gear then add some elemental resists on it.
You could sharpen your weapons and put poison/elemental damages on it.
It led to interesting strategies where you could put all your resist on fire for example, then cast a fireball at close range and heal from the explosion while killing everybody.
