You asked for an example of how streamlining the system "dumbs it down". To be fair, the quoted phrase is not one that I would have chosen, but anyhow.
I give here a detailed example, compiled all from memory (only meaning to demonstrated that I very much love this aspect of the game).
Velveteen Robes
Velveteen Robe consists of the following parts:
Velveteen robe front
Velveteen robe back
Velveteen sleeves
Silver breastpin
Buffalo Leather Shoulderguards
Buffalo Leather Strap
Cotton Yarn
The robe front is made from 3 pieces of velveteen, and one piece of cotton. Why a piece of cotton? It represents the undertime portion of the robe (the part below the hem), and the portion that is visible in the front, underneath the slightly parted opening. For a black robe, which cotton cloth is used, but other colors use different colors.
The robe is made from 4 pieces of velveteen, as there is no special feature on the back of the robe.
The sleeves are made from 2 pieces of velveteen, making up the bulk of the sleeves (other decoration is added later in the assembly step).
The silver breastpin can clearly be seen on the front of the chest of the final product. Cotton robes did not have chest ornaments. Chest ornaments were added starting with brass ornaments on canvas robes.
Buffalo shoulderguards are clearly seen on the finish product.
Buffalo leather strap is used to make the leather lacing on the top of each of the sleeves.
Cotton yarn is used to complete the final assembly.
In the end, every part or material used is actually reflected in the final item. In addition, every feature of the item is reflected by the inclusion of a part of material in the recipe. In this way you could look at an item in-game and get a sense of what the recipe would be.
As an example of THAT, the vintage robe. I'm not quite sure what shade the outer linen portion is, I'd guess deepsea-blue. The underrobe is a vivid shade of red, which is almost assuredly velveteen red. The chest ornament has been upgraded to a gold ornament instead of silver. Further, the shoulderguards and leather lacings on the arms match up with toad leather. Finally, there was the addition of another ornament, the leather cuffs on the sleeves that the end, which leather matches up with the leather on the shoulders.
This system pretty much tosses that out.
I foresee:
Velveteen Robe
1 velveteen cloth
1 buffalo leather
1 silver ingot
1 cotton yarn
In my eyes, this makes the system less deep and enjoyable. I guess I should be used to that, though. I enjoy mathematics in-and-of-itself, and 99% of the population despises that as well. With the new mass tyranny seeming to take place in video games, I shall not find myself a home, and I'm sure you'll be just as happy with me not being there.