Crafting costs are completely broken. There is a reason the costs are coming down significantly in the near future. The gold cost is high at the moment to provide a solid gold sink, but it's not a gold sink if the costs are so prohibitively high no one ever crafts anything. You are one of the very few people actually using the blacksmith. I was excited about the blacksmith, but I haven't even leveled mine all of the way because you can spend money on the AH and get exactly what you want. The cost should be brought down to make gambling on the blacksmith be a viable way to spend money and get decent items rather then just a waste.
They are adjusting the prices for a reason. Do you understand that it's only broken because it's the players who choose what gold is worth, not blizzard. It is not fundamentally flawed, it is an effect of the players, and thus they are adjusting it to make it worthwhile.
So long as the nerf to the costs is atleast half it would become useful. I have already used the blacksmith and received upgrades as well. I have also spent a couple million on garbage too. It's a decent way to make quick upgrades. In my case it's even more useful because I refuse to buy gear off the AH so it's an outlet to spend some gold.