Smithing isn't necessary at all, it's just an easy way to get shit you want!
It's BORING. It's BORING and EASY. And being EASY means it's a simple and effective way to do a thing, which in turn means most people do the thing. Players optimizing the fun out of their own playing is a well-noted phenomenon, it shouldn't be controveral that people do smithing to try and level up even though it's shitty.
I haven't really played since release but levelling up was so goddamn slow and tedious that I absolutely did smithing to try and powerlevel so I could play around with the cool new perks and stuff. Because I hate joining kingdoms and have never had positive experiences joining a kingdom as a mercenary, all I really had were trading, kicking bandits around, and smithing, and smithing was fastest and not as tedious.
Also, by kicking bandits around, I mostly mean kicking looters around, because Bannerlord suffers from what most of Mount & Blade suffers from - a lack of dudes to beat up if you're not in a war or I guess a raider. Even when I max out my troop cap, I'm still not even remotely a threat to most lords, so even if I want to jump into vassal bullshit it's kinda just, like, "this is almost certainly suicide!" but then bandit fights become more of a chore than anything, because there's no danger of you losing them.
One of the biggest issues I had with the versions of Bannerlord I played were how almost everything had such obnoxiously high skillpoint reqs. Almost every horse beyond the shitty starter ones needed huge numbers for riding. All the cool weapons did too. Raising your numbers was a long and tedious process because you had to work for every goddamn single point increase and you probably needed like fuckin 50 or whatever. Like. I thought the starting horses that I could get were sluggish and felt shitty, but in order to even try out new ones I had to just ride them around and fucking
endure how much I disliked them until the game
deigned to allow me to
attempt to improve my experience with it. Warband, you just go do whatever, get some xp, then level up and bang.
Like I GUESS it's a more realistic design but also I don't care about that, I just wanna make pretend that I'm a cool sword guy making his way in a tough harsh world by being a cool sword guy. I like assigning points and seeing my numbers go up, I don't want to ACTUALLY fucking struggle with dull swords and slow horses.
I guess this is even less valid than the rest of my bitching but also man I hate the even-earlier-medieval aesthetic. Fucking -everybody- is just a guy in a shirt. The big cool guys are just guys with the bare edges of their metal shirts sticking out from under their regular shirts. It's also like realistic now I guess instead of being shoddy analogues to stuff so everything just feels kinda samey? I knew who the Nords were vs the Vaegir, and such. I absolutely can't tell you what the diff is between the Battanians and the Vlandians are, they're just the west forest guys and the north forest guys to me. Their rabble have shirts and trash weapons, their higher-tier guys are dudes in mail with a surcoat or someshit over it. That might also just be the Imperials??? The only reason I even sorta know the Imperials is that in multi the menavlion was fucking obscenely strong for like no reason. I was able to score moderately-decently with my shitty Hawaiian ping with them. Ugh I wish I could be less chud-y about not liking the aesthetic but fuck that Renaissance-style armoring just looks and feels so cool. Breastplates, silly hats, etc. Whatever, I'm rambling really hard I guess.