Interesting idea but mayby add something to the reqirements like you need some materials (limited supply of them available so u need to make some choice )to upgrade item not just gold, or at first u need to deliver some tools to blacksmith to unlock that upgrade option.
+1 seems not that impactfull but +2 should not be available at druid grove.
Anyway i still hope for some items rework like xeonide that is +0 blue / rare item ...
Mayby some expanded options to sussur bark quest option, too couse tbh just dagger , sickle and greatsword seems a bit limited, where is typical sword, axe, a bit more just melee weapons in it would be nice.