Does Blacksmith level just affects stats of the weapons? or does it affect what you can or cannot make.
Thanks, I'll give unpack file an attempt and see if I can somehow get a higher max inventory out of that. In return for that, here's some answers to your questions.
Blacksmith level affects bonus tenacity and is a factor in the potential number of enchantment slots. Bonus tenacity adds more of a random element to what you'll craft out of certain materials, so it does indirectly influence what you can craft.
I can break down the crafting system in a spoilerish way, but it's already been covered to an extent in this thread elsewhere:
What weapons you craft is determined by the final mass, tenacity and magic of the weapon inc. tenacity bonus. Every weapon has a minimum requirement for all three which you can see by pressing D(etail) on the weapon, and you'll craft roughly 1/5 of the weapons closest to the end result. As far as I can tell, its a bias on tenacity, so the weapons with closest tenacity are what you'll craft, which means you get a different list depending on how much random bonus tenacity you gained from blacksmithing level.
Here's some examples in case none of that makes any sense on its own:
3x Tinstone 12/39/0 Reinforced Broadsword, Banner of Arms, Raiding Machete, Commander's Sword
Tinstone, Magic Crystal, Magic Silver Ore 9/17/10 Lava BAxe(+5), Volc. GSword(+1), Koi Naginata, Commander's Sword, Crescent Moon Sabre
Panacea, Tinstone, Magic Crystal 6/15/8 Raiding Machete(+5), Commander's Sword(+3), Crescent Moon Sabre(+1), Jitte, Marine Boomerang
So, on the left you have the three ingredients, then X/Y/Z for mass/tenacity/magic and on the right, most/all of the possible or most likely crafts, numbers in brackets mean that you can only craft those if you randomly roll that value or higher in bonus tenacity, which also gives a high chance you'll actually craft that weapon. As you can see, there is a bias on weapons with tenacity values close to the result, rather than the mass or magic stat. Meaning creating high mass/weight weapons doesn't guarantee you'll get a big weapon, just a heavy one, and you can sink 10 or more magic into a weapon and still get an unmagical one like Commander's Sword. Of course you can't create the bigger weapons without high mass either, because of the minimum requirements.
You can get an guaranteed elemental weapon with Tinstone, Magic Crystal and adding an elemental stone of the type you want (Dark, Light, Water, Wind, Fire), which I'm sure you already knew. Basically adding a stone and meeting the minimum requirements for an elemental weapon. It can be tough getting the right RNG to craft some of the elemental weapons without using a stone (or alternative).