I can't see this working. It seems like one of two things must be true, neither good. Either:

1) The "fruits" of the forging are only of limited value. If this is true then there's no impact on game-play, so why bother? I guess it adds some role-play pizazz, but nothing more.

2) The "fruits" are of *substantial* value, i.e. they affect game-play. If this is true then people will have forge-whores enhancing all their weapons. Adding "flaming bite" attacks, etc.

Anyway, that's my take on it.