Well, I caved and bought it. The smithing stuff is what eventually sold it. I used to play a mod for Warband with smithing all the time, although the official version is a bit better. I hope they can eventually put in armor making. I'll just reiterate that using smithing to break stuff up is profitable, to the point that buying weapons and them breaking them can be a net profit (seems to usually be the case). I haven't tested whether more expensive items, made with more expensive stuff, leads to more profit when broken up, or loss.
I also found out that, from what I can tell, prioritizing smithing in character creation is the wrong move, as it levels up early on quite fast and its smithing endurance that really limits the player. Also companions can and should smith, especially on the reaction and breaking down of weapons where skill level is unimportant (although perks can be important). I don't think there is any profit to selling one's weapons, its rather a way to get better weapons than might be otherwise available/affordable.
I'm not too worried about the inevitable restarts, Mount & Blade is one of those games where each start is faster because the player knows more about what they're doing. I wouldn't recommend the raider starting strategy, where the player quickly builds up a cavalry force and uses it to raid a border village for a huge initial cash influx, on the first few playthroughs. I'm sure its perfectly viable, even in Bannerlord, after playing for a while, although its always a high-risk, high-reward strategy: either you get the villages contents and a large sum of cash after selling, or you end up in chains with nothing. Maybe permadeathed in this game.