I don't think it would be very healthy for the item prices, though; essentially worthless besides for upgrading from dragon to crystal. Furthermore, it eliminates an intended grind for ironman (that being smithing the upgrade tiers) so you could just focus on smithing and make one item, which is a little too easy, imo.
Sure, it's tedious to get all of the other tools but once you've gotten them once, you don't need to get them again. They're there. This suggestion just makes it a little too easy for my liking.