I did say it was fearsome. Bear in mind that this mega-smith would NOT be sacred, unlike most top-tier mages, and would be expensive to upkeep.
Even so, I have to agree that it would probably be overpowered, with all the mad forging opportunities.
Alternative Ulm magic ideas:
Apprentice Smiths: A new, low-tier caster for Ulm. One pick in Earth, as well as drain-immunity and the forging bonus. Should probably cost about 70 gold. The inclusion of this unit would enhance Ulm's magical abilities by providing a more efficient researcher and low-level forger, freeing up Master Smiths for more important duties. The apprentice wouldn't be particularly useful on the battlefield. You could get him up to Earth-3 with Earth boots and Earth Power, which
might be worth it, although Master Smiths are probably a better choice to give items to.
Alchemists: Ulm has an alchemist pretender, so why not give them regular alchemists, with one earth, one fire and one astral? At a reasonable cost. No forge bonus or drain-immunity for them, of course. But even so, that single astral pick would give them a smattering of new strategies to pursue, most notably crystal matrixes. The 50% bonus to alchemy would be handy as well; possibly TOO handy.