No, the Items stay the same, but the higher your skill level, the better the Items you are able to make.

Is there a way you can have different qualities of the same item that would make it stronger. Kinda like the 5 stars thing, but more helpful.

Like, you have blueprints for a refinded lightwood sword, or super lightwood sword, or you could use blue, black, pink, or something like that. And like pink is 10% stronger than green and black is 10% stronger than pink, something like that. Gives it a little more variety without having to think up a thousand different items. And I would a**ume that it wouldn't be all that hard, but what do I know? I barley know how to post a message.

Some other games have what I'd call a 'Forge quality', where the experience of the creator determines the effectiveness of the result.
I just thought that I'd leave it as it was for now, to minimise any confusion.
I do understand what you mean, and the idea is probably a good one.
I want to spend a bit more time sorting other things out before I consider it though.

I had also been thinking about enabling items to be subject to wear and tear, requiring maintenance to stay useful. Nothing would be destroyed, but it would be rendered useless until repaired. However, I've seen a few other games try this and it just doesn't seem to work unless it's implemented in a 3D realtime environment.

Now, if we mainly get the blueprints from mobs, are you going to increase how many mobs there are on the map? Like put several in each section that we walk over. Or are you just going to leave the ones you have now and we just have to keep searching for them?

They will be all over the place.

I've seen wear and tear systems work out really well in both real time and turn based games. One of the best systems I've seen, if you fight certain monsters, or spend too much time in a sandy area, your equipment gets rusty, and becomes less effective until polished. The better the equipment, usually the less prone to rust. Also, blessings against equipment damage were available to purchase, though I prefered to coat my weapons with protective snake oil.