My view has always been that the primary issue with artifact crafting in Exalted is due to the model of artifacts used traditionally in the game being remarkably close to D&D magic items. Stuff which grants you really useful magic buff effects, which improve your combat numbers in an extremely efficient way. Stuff which grants you powers and abilities you can't access as a normal part of your character builds which also do not cost permanent character-building resources.
My problem is that Exalted used the term Artifacts in the first place.
The majority of the bling is literally improved items made out of magical (I shudder at that) materials that are more appropriately called essence reactive materials. Going back all the way to Tolkien the vast majority of 1-3 dot artifacts are Bilbo Baggins Mithril Shirt (Artifact 3) or other such items.
I think Exalted should have taken a cue from D&D regarding the terms artifacts and magical items
Call your standard Daiklaive, armor, boots of god kicking, etc a different term. These represent the players being blinged out with looted gear of essence reactive materials.
Artifacts are the ultra powerful game shaping artifacts (with awakened Least Gods who have their own agenda) that aren't just handed out at character generation