Yoz, The balance I speak of, is between a way lower lvl character and a capped. Perhaps not being able to kill them at all unless they shoot you first. The point is simple the system as it is, is broken. The thread in my sig has many ideas on what could be changed.
This game isn't just harsh for newbies, it's harsh for ANYONE not a capped pk build of some form. And the crafting system isn't as much of an issue. It doesn't matter how you get the items, it's that they can be stripped away in any number of fashions before you even make it to your tent, or town to sell/use them.
As Gat said, it's a game that is meant to be played by not just one small 'niche' of people who do it one way, but a variety of people with differing play styles. Kinda like um you know, Fallout?