True, but while the puzzle is entirely logical, it wasn't entirely obvious. I found that throwing the glass against a non-descript fence to distract the smith be a little ... "How was I supposed to know to do that?"
It's a staple of adventure games and part of the fun. You tend to ignore the "How was I supposed to know how to do that?" when it comes to solving adventure game puzzles. I will admit that there are certain adventure games where the solution to a puzzle makes no logical sense (a certain pie in King's Quest 5 comes to mind), but if you follow the three basic rules to adventure gaming (listed below), you should be fine.
1.) The Sierra Rule of "Save Early, Save Often"
2.) Take everything not nailed down and if it is nailed down, solve the loose nail puzzle.
3.) Use everything in your inventory on everything else.