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Blacksmithing/Leatherworking specialization has changed with specialization providing recipes to make powerful items that only you can wear.
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I wouldn't call it worhless if you (personally) want to wear/use the item. **Think Dark Iron Breastplate, Blacksmith Trinket and practically every Engineer item**
If you are looking towards Blacksmithing for a profit on the other hand, then it does seem to diminish the value greatly. Of course, smithing has never really been the most profitable profession.