I agree with all of these. the game isn't minecraft or an RPG, it's about being a blacksmith. perhaps there will be mods at one point, but I'm not sure.
on the water bath: I'd love if a newly created blade were still hot from the furnace, and you needed to cool it down inside the bath.
maybe a little animation that switches out your hammer with some pliers, so it doesn't look like you're actually touching the white hot metal wih your bare hands.
maybe go a step further and require reheating a piece in the furnace to make it smithable again, like if you for example accidentally make a sword blade and dip it in the water, then later need a hammer head, you can just put it in the furnace and work it again.