Well as is now, you need a DM to do racial crafting. I was able to make elven chainmail because of a DM. I tried doing something along the lines with my character's apprentice awhile back. The apprentice had to make elven chainmail to graduate; however, even though we collected a bunch of mithral items we could be on at the same time as with DM and also the event was causing havoc. So, she never made elven chainmail.
For instance I think that the only race that should be able to make dwarven axes should be dwarves.
Maybe some bonuses for longswords or bows for elves.
Gnomes maybe get something with crossbows and alchemy.
No matter how much one spends time in designing, coloring, and putting some time in the crafting, people only see stats. It is hard to say that your character is a master craftsman, a rarity in his/her trade. Tried long and hard, but it all comes down to game mechanic advantages.
I would like to make masterwork items, gild gold, silver, platinum, and use gems and other valuables. I would like masterwork system in place that a character can spend a significant amount of time, like 1 or 2 weeks RL, working on an items to make a masterwork.
As it stands now, it takes less than a minute to make a steel sword, guild it. When in the real world it can take weeks and even months to make blade, depending on the detail the artisan/smith puts into it. So, how can one make that in the system?
I think if the crafter is willing to put the time in and the money up to make a masterwork item, from design all the way through. Then he/she should command a higher price for the work. As it is now a crafter can make it like an assembly line, one after another. Yet, when another crafter puts time in and does a little design. How can one says theirs is better than the mass produced one. With the stats you cannot.
Also with details and some up stats you can get a whole variety of crafted items.
What would you a player want?
A silver-gilded steel dwarven axe or a master work dwarven axe that shaft is made from solid ash wood, the blade is made from steel gilded in silver with golden runes etched upon the head giving the axe its name with a ruby imbedded at the top, the shaft wrapped in gargoyle hide for grip. The second should be crafted and the crafter should fetch a higher price for it, and it should only be made by a dwarf.
A silver-gilded steel longsword or an elvish longsword with a thin blade with razor sharp edges, the cross hilt is encased in gold while the pommel is that of a dragon. Silver marks the edge of the blade.
Same can be applied to armor, bows, and other items as well.
Each race has its strengths which should be seen its weapons, arms, rings, etc.. I think crafters should make such items instead of everyone looking for their weapon from loot drops. The only other option you have is enchanting which requires a character level greater than 14.