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Yes, I think leatherworking becomes better as you go up. At first between failures and scraps I found linen to outdo it. But you're dead right about wool and silk becoming rare as you progress.
I am more impressed with skinning/leatherworking as opposed to smithing/mining. Mining takes a hell of a long time and even locating ore (despite the minimap) is a pain.
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Still I feel like a child when I look at the moon, maybe I grew up a little too soon...
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