((I realize these ideas will likely never happen, still a fun discussion))
I've actually said in other games multiple times before, for me the holy grail of a crafting system would be a hybrid of Wurm Online, Mortal Online, and Dark Messiah.
Wurm Online in that Wurm takes work. Because of Wurm's improvement system, making a 50 quality sword on a good crafter takes mere minutes. The same crafter would take tens of minutes to make a 60 or 70 quality sword. An hour or so for an 80 quality. Hours for a 90. And days for a 99 (Max) quality sword.
Mortal Online however is a far more interesting in terms of materials. In WO there were only a few materials and each item had a single resource that determined it's "type" / final properties. For instance using an iron, steel, or silver blade would make an iron steel or silver sword but the handle wood wouldn't matter at all. Mortal Online is FAR better in this regard. Obviously no explanation of MO crafting is needed on these boards.
Dark Messiah comes in, in that the Wurm improvement process was essentially smashing hotkeys. As you can see in the video you posted, the DM system is much more involved and engaging.
As to how would this effect game balance? Positively IMO. Not everyone would really enjoy crafting but that's fine. Balancing a crafting around what non-crafters want is like balancing PvP around what non-PvPers want. And if you find a quick timer and then done system to be engaging as a "crafter" you aren't a crafter. You're a glorified gatherer. So with that out of the way:
"We need to sit there for hours to make each sword"? No. You sure as heck don't. I imagine if the Wurm system were implemented in MO2 most people who just get 50-70 QL gear for general usage and 80+ as siege gear or as a massive status symbol. That's part of the point of the system. There will be as much volume of gear as the market demands, because low level crafters will get their skill up by meeting the demand for dozens of 50 QL bows, swords, etc.
This may be a bit off-topic but now that I've had two hours to sleep over it. It's kind of a problem in general with all extraction and crafting in MO. It's all just a GUI that you put resources in, maybe adjust some options and parameters and then you wait for a timer to do it for you. What if you had an active way to influence the outcome? Improve quality or maybe even just adjust a few parameters as the process goes. Over the years people have even pointed out a crafting system similar to the sword crafting in Dark Messiah of Might and Magic:Actively participations makes the process less mundane and less macroable while distinguishing people that know what they are doing from those that only have the skill and they can also dampen the difference between high and not as high skills in a potential longer progression system. Make it so you don't have to do it actively but there are benefits to it, even if it's just altering some things about the product and not necessarily making it much better.
I've actually said in other games multiple times before, for me the holy grail of a crafting system would be a hybrid of Wurm Online, Mortal Online, and Dark Messiah.
Wurm Online in that Wurm takes work. Because of Wurm's improvement system, making a 50 quality sword on a good crafter takes mere minutes. The same crafter would take tens of minutes to make a 60 or 70 quality sword. An hour or so for an 80 quality. Hours for a 90. And days for a 99 (Max) quality sword.
Mortal Online however is a far more interesting in terms of materials. In WO there were only a few materials and each item had a single resource that determined it's "type" / final properties. For instance using an iron, steel, or silver blade would make an iron steel or silver sword but the handle wood wouldn't matter at all. Mortal Online is FAR better in this regard. Obviously no explanation of MO crafting is needed on these boards.
Dark Messiah comes in, in that the Wurm improvement process was essentially smashing hotkeys. As you can see in the video you posted, the DM system is much more involved and engaging.
As to how would this effect game balance? Positively IMO. Not everyone would really enjoy crafting but that's fine. Balancing a crafting around what non-crafters want is like balancing PvP around what non-PvPers want. And if you find a quick timer and then done system to be engaging as a "crafter" you aren't a crafter. You're a glorified gatherer. So with that out of the way:
"We need to sit there for hours to make each sword"? No. You sure as heck don't. I imagine if the Wurm system were implemented in MO2 most people who just get 50-70 QL gear for general usage and 80+ as siege gear or as a massive status symbol. That's part of the point of the system. There will be as much volume of gear as the market demands, because low level crafters will get their skill up by meeting the demand for dozens of 50 QL bows, swords, etc.