Another thing to consider about what happened to the Blacksmith is that it could possibly be Replaced related. This is kind of far fetched, but you know that old Replaced guy, Tenkai? Some Japanese myths and media like to say that Nankobo Tenkai was really Mitsuhide Akechi escaping his death by changing his name and becoming a monk. Tenkai could have directed troops to destroy that village and that happened to the Blacksmith for whatever the hell their plans were at the time. But that could just be me trying to connect things too much. Not everything needs to go back to them, but it still nags at me.