Counter-point: you have so many blacksmiths not because that's what people expect but because you have this many factions, and for each faction it makes perfect sense to have their own source of arms instead of relying on external supply from potential enemies. Just like it makes sense to have a faction chief, and as a result in this game the faction chiefs easily rival the blacksmiths, numbers-wise. The presence of both is a natural consequence of the world building you went for.
The same argument could be made of any essential profession, and yet it doesn't happen. And even if I were to accept that premise, it's not necessary to make these characters NPCs instead of assuming that there's one in the background.
The blacksmith argument that equipment vendors are required is turned on its head when a couple of them don't even do that.
And yes, it
is what people expect. I've been keeping tabs on the pulse of commentary on the game since the first public release, and it's always bars and shops. The outcry when Winter City was empty despite it always being intended to be just a backdrop for the palace of ice, and hence we were liars for supposedly hyping up a big population center to have it deserted? How should we fill it according to the self-proclaimed voice of the people? Bars and shops, of course.
And as for our sister game? Well, consider Dhaal, with not just one, but two, and perhaps even three planned bars. Then when we look at every past planet...
Bars and shops, and shops and bars, and bars and shops, and shops and bars, and a weapons dealer. On the other hand, we have Alypia with her tours of the winter city which showcase the boreal elves and their lives far more efficiently than just another bunch of bars and shops.
Anyways, there are already two bars that serve as important content hubs in the game, and two more in KM. There is no need for yet another.