Obviously, if there is time in the adventure, a player can craft whatever they want, even masses of swords, one after the other. This is part of the craft system, and I'm one of the ones who pushed strongest to get LEW to specifically assert this, since they had erroneously not adopted it yet.
Where do you draw the line in normal game, if time isn't a problem? Would crafting that one item and selling it to get that little bit of money to craft that slightly more expensive item have been a problem in a normal game? No (IMHO), unless the PC is in (rather uncommon) situation where he actually has little or no time.
I haven't seen the need for craft points in RL games either, as the DM decides if the players' actions make sense.
In a normal game, the GM lets the player start crafting and then maybe throws an event in if it is a long crafting, but it takes game time. The process is constrained by the game time it takes to do this. The opportunity cost is that the player is not doing something else during that time. It isn't a judgment call of "is he exploiting"--it is a simple matter of keeping track of time.
In a shared world living setting while out of an adventure, there is no such opportunity cost. If you don't implement a specific system on how much is reasonable to craft in a certain amount of time (a la the time system with one craft day per RL day), then you have to make random judgment calls out of thin air.
it is sort of trite that we lay down rules that limit how much a character can craft just because it might bring him more gold than a normal character of his level.
Of course the character will have more gold from crafting. The problem is when there are no rules or limiting factors whatsoever, the character may have far too much more gold, enough more gold to make adventuring for treasure pointless because they can make more money by crafting, raking in hundreds of thousands of gold.
This isn't what Xael proposes though--he wants a subjective judgment call instead of a hard limit pre-agreed upon. This is not an acceptable choice for a living setting because it will either be inconsistent and unfair, or else if it actually is consistent, it will actually be a hard limit that we just don't tell you. This is why I'm having a hard time understanding why anyone would propose what he is proposing. I can see a "hands-off" approach, although I think it would implode immediately, but I really can. But he wants a "hand-on" approach with a judgment call. Help me out here: Xael, would you prefer we had a craft point limit by day/level and we just didn't tell you, so it seemed like we were making a judgment call when we were actually tallying up the points you spent?