Side note - Yeah, the Morrowind \"Crafting\" system was rather bogus. Mayhap, in Development, they simply put it off until the last minute and packaged it away with no care for the system being weak/unfinished/unfulfilling. Or they just did not wish to bother with it, but I digress...
As for the Blacksmithing/Ore-Gaining idea, it is a tricky balance if done that way. If Blacksmiths themselves are not able to fight to get metals, they must rely on others to guard them or bring in such items (which generally costs money).
Now, if I were a Blacksmith who had someone guarding me while I mined away, I would most certainly ask them if they required anything smithed as payment for helping. But not all players operate on their word like I do.
In another MMORPG I played (Dark Ages), I could polish gems as a Rogue. I went out and hunted my own materials, then sold my stock for a VERY tidy profit. Sometimes high-up players needed something polished and supplied the gems and labor required. Generally, tips for actually helping them were added for good taste.
On top of that, I could also purchase Gems to polish from one specific NPC if I did not find what was needed. The NPC materials merchant was a handy thing to have around, and it could be considered for future Blacksmiths/Armorsmiths/Weaponsmiths/Ringsmiths/etc.
However, what is the true difference between buying from NPCs and players who went out to hunt? Not much, and I\'d bet the prices would be the same. On top of that, how would the Blacksmiths gain money in the first place to begin their business? Begging? Blacksmith Guild Support? Promises to others? Stealing? Killing? Non-combat based Quests with money as the prize?
It\'s a vicious game cycle where most of them have to run around bashing monsters. Sad, but true.