The main problem is people crafting with focus. Undercutting the normal price... so normal crafts dont make anything.
And focus crafters earn only abotu much as the normal crafts would have.
AND then EVERYONE undercuts each other ...
And we get a state ... where it's cheaper to set up an buy order for ressources at an reasonable price and wait.
Then craft it yourself.
PS: The death spiral:
Low Craft Worth>Lesser Worth of Ressources>Low Craft Worth etc is going strong atm.
Seeing lots of dip downs for no reason, except people dont buy ressources ... cause focus crafters make them worth less as finished craft.
So the ressource prize goes down ... then the craft prize goes down ... and again ... and again.
This is mostly seen on items that are highly sought after.
For example... across the board mostly. Falling rapidly in price. xD.
Even though its an economic game, Albion is really a poor place to set up shop as a crafter if you aren't ready to play on the behalf of a guild with a hand to play on the big map and again history of MMO's show us how this plays out.
First there is an initial market that is completely insane where prices fluctuate widely. Crafters and gatherers make a ton of money during this very brief period (which is now mostly over). Next (where we are right now), most Auction house (crafted items) are worth at or below resource value. After that they become worthless, the prices might rise, but 3 months from now no will is going to be buying T3, T4 or T5 gear. It will be utterly useless as the entire community will have moved on and become accustomed to T6+ gear. You might think, well as a crafter, I will just make those, but the only way you are going to be able to do that is to risk gathering in PvP zones. Most gatherers will realize that while they could make a profit on higher tier items, they can't because they can't gather there. The only people who will be crafting T6+ gear are going to be guilds and they will be doing it for themselves, not for others.
So in the end, there is no future for crafters as economist. They are a support leg for GvG and PvP play and it will be guilds who control resources not gatherers or crafters. See Eve Online as an example of how this plays out.
The auction house will stabilize and if you can gain access to mats you will certainly be able to make some silver. Ultimately though low end players (people not participating in guilds and high end play) will be gathering T2-5 mats, selling them on the markets and lazy rich guilds will buy them to save time. But very few are going to be buying your T5 gear on the auction house because very few are going to be wearing it.