To make crafting cool, I think you should really consider each item, and make it's creation story-book unique. It can involve the need for the blood of a dragon, or it has to be made at midnight, during a thunderstorm. Or a demon summoning ritual, in which you actually arrange the candles (a'la Ultima 7/8) and if done incorrectly it could have some interesting consequences (an escaped demon storyline). a virtual amount of time has to pass ( ie the character spent a day in the ruined temple), and seeing related descriptive text can certainly add to that experience.
I, like some of the previous